You participated in a vacation program at a local audit firm during your semester break. During the vacation program, you assisted an audit senior with planning a medium-sized company, including developing appropriate substantive audit procedures. You have one more semester to complete your postgraduate course and have indicated to the audit manager that you would like to work full-time at the audit firm upon completing your course.

The audit manager has asked you to write a report to determine your suitability as a candidate for a permanent role in the audit firm. The manager wants to assess your ability to apply the knowledge you gained to the audit planning process, develop appropriate substantive procedures, and develop your report writing skills.

1) Identify 4 business risks of The Company that will increase the risk of material misstatement (specifically inherent risk) at the assertion level for classes of transactions or account balances. For each business risk, identify only 1 class of transaction or account balance (income statement or balance sheet line item), and for each class of transaction/account balance, please identify the assertion most (only one) at risk of misstatement. You need to explain why each business risk will lead to a risk of misstatement to the specific class of transaction/account balance and assertion you have identified.

2) Describe, in detail, the appropriate substantive procedure that will address each class of transaction or account balance and assertion identified as at risk of material misstatement. The description of procedures must be detailed enough for someone with limited auditing knowledge to carry out the procedures correctly.

Please do not use Transaction Revenue and Assertion Accuracy,

IDP Education Limited (ASX Code IEL) is the company for this assessment.

Risks:

An investor in IDP Education also needs to consider the risks that have the potential to impact the financial performance

of the Group going forward. A number of these key risks are summarised below.

Regulatory risk- The Group generates a substantial amount of income from placing international students into education

institutions in Australia, the USA, the UK, Ireland, Canada and New Zealand. To the extent that any of these destination

countries alter immigration policies, regulation or visa requirements that reduce the number of student or migration visas

that they grant, this will have a direct impact on IDP Education's student placement enrolment volumes and/or IELTS

test volumes and therefore revenue. Changes by government immigration authorities in these destination countries that

decrease or remove the acceptance of IELTS, increase competition from other providers or change the way that tests are

administered, could also have a material and adverse impact on the Group's financial position and performance.

Geopolitical- Political and social instability, natural disasters, infectious disease outbreaks and global pandemics,

including the impact of lockdowns that flow from these global pandemics, expropriation, nationalisation, the application

of sanctions, embargoes or export and trade restrictions and war have the potential to limit the movement of people across

borders. Other issues such as unfavourable press, negative international relations and other international events may reduce

the attractiveness of particular destination countries and/or ability of source countries' students and other migrants to pursue

international study or immigration. Any future circumstances which reduce the attractiveness of a particular destination

country and/or ability of source countries' students or other migrants to pursue international study or immigration may

have a material and adverse impact on the Group's financial position and performance.

Risks of operating a global group- The global footprint which IDP Education operates across is exposed to regulatory,

operating and management complexities and risks. There are certain risks inherent in doing business in foreign jurisdictions

such as unexpected changes in legal and regulatory requirements, difficulties in managing foreign operations, longer payment

cycles, problems in collecting accounts receivable, and difficulties in the consistent implementation of business activities.

There may also be foreign exchange controls which restrict, prohibit or delay the repatriation of funds, and other risks

to the effective hedging of foreign exchange exposures. Prohibitions and delays may also exist that impact payments

from customers or government agencies. These issues may arise from time to time, in the foreign jurisdictions in which IDP

Education operates, which could have a material and adverse impact on the Group's financial position and performance.

IDP Education manages its exposure to these external risks through organisational resilience measures including access

to funding channels and business continuity management processes. Each of the countries that IDP Education operates

in has separate taxation laws/regulations and authorities. Whilst the most significant tax jurisdictions are Australia and

India, the global nature of the operations results in significant complexity in managing the Group's tax affairs. Further detail

on the current tax risk is set out in Note 30 (Contingent liabilities) to the Financial Statements.

Competition- IDP Education operates in highly competitive markets across all of its geographies and products. IELTS in

particular competes with high-stakes English language tests and, in most jurisdictions, IDP Education competes with the

British Council as a distributor of IELTS. IDP Education's ability to respond to competitive threats in IELTS tests is, in part

dependent on co-ordination with the IELTS partners. The following factors have the potential to reduce the number and/or

profitability of IELTS tests that are conducted by IDP Education and therefore could have a material and adverse impact on

the Group's financial position and performance: (i) the cost of sitting alternative high-stakes English language tests being

lower than that for IELTS; (ii) increased acceptance by destination education institutions and immigration departments

of alternative high-stakes English language tests; (iii) an increase in the number of testing centres, and times, at which

alternative high-stakes English language tests can be taken; (iv) alternative high-stakes English language tests being

marked in quicker timeframes when compared to those for IELTS; or (v) alternative high-stakes English language tests

being perceived to be fairer and/or more suited to people whose first language is not English.

Privacy and cybersecurity- Maintaining privacy and security of all data, including the personal data of our customers,

clients, students, employees and company data is critical. There continues to be a growing trend in cyberthreats against

individuals and companies. The nature of these cyberattacks is constantly evolving and can include sophisticated phishing

scams and attacks on critical infrastructure. Additionally, the privacy and security of the data we hold may be compromised

by breaches of our information technology security and unauthorised or inadvertent release of information through human

error, malware or espionage. In addition to the threat of data breaches, the impact of cyberattacks also has the potential

to cause material business disruption to IDP's operations which may impact IDP's ability to meet its financial objectives.

IDP Education continuously monitors and assesses its cybersecurity threats and works to ensure its systems are resilient.