You are a manager in Costello, a fir m of Chartered Certified Accountants, which has recently adopted a business risk methodology. You have been involved in briefing clients about this top down approach and promoting the risk management assurance services which Costello offers. The following information concerns one of your clients, Ferry, a limited liability company: In January 2005, Ferry purchased exclusive rights to operate a car and passenger ferry route until June 2014. This offers an alternative to driving an additional 150 kilometres via the nearest bridge crossing. There have been several ambitious plans to build another crossing but they have failed through lack of public support and government funds. Ferry refurbished two 20-year old roll-on, roll-off (Ro-Ro) boats to service the route. The boats do not yet meet the emission standards of Environmental Protection Regulations which come into force in 2010. Each boat makes three return crossings every day of the year, subject to weather conditions, and has the capacity to carry approximately 250 passengers and 40 vehicles. The ferry service carried just 70,000 vehicles in the year to 30 June 2008 (2007: 58,000; 2006: 47,000). Hot and cold refreshments and travel booking facilities are offered on the one-hour crossing. These services are provided by independent business on a franchise basis. Ferry currently receives a subsidy from the local transport authority as an incentive to increase market awareness of the ferry service and is efficient and timely operation. The subsidy increases as the number of vehicles carried increases and is based on quarterly returns submitted to the authority. Ferry employs 20 full-time crew members who are trained in daily operations and customer service, as well as passenger safety in the event of personal accident, collision or breakdown. The management of Ferry is planning to apply for a recognized Safety Management Certificate (SMC) in 2009. This will require a ship audit including the review of safety documents and evidence that activities are performed in accordance with documented procedures. A SMC valid for five years will be issued if no major nonconformities have been found. Your firm has been asked to provide Ferry with a business risk assessment (BRA) as management assurance service. Required: (a) Describe what is meant by the term top down approach in the context of business risk audit methodology (b) Identify and explain the business risks facing Ferry which should be assessed. (c) Describe the processes by which the risks identified in (b) could be managed and maintained at an acceptable level by Ferry