The paper "Tassal - Assessment of Business Risk" is a good example of a business case study. With the increase in technology and globalization which has facilitated the expansion of the business activities, the information on business has also increased with equal measure. For decision-makers in the organization to make good use of the available information, it is important for such information to be relevant, reliable and accurate to help in enhancing the decision making process. Auditing ensures that there is accuracy, reliable and relevant information provided by accounting information (Bilinelli 2016). More focus has been given to auditing and assurance on auditing practices in the identification of the type of audit risk which can either be intentional or unintentional which will ensure that reliability and credibility of the audited information given by financial statements which are used by various stakeholders for the purpose of the decision-making process (Holbrook and Brooker 2013).
The process of identifying and assessing the audit risk is very important for any auditor. The IAASB discuss the content of audit risk and define the term as that particular risk which can be expressed in the form of any inappropriate opinion of financial misstatement recorded in financial statements.
The audit risk arouses as a result of misstatement of material fact and the inability of auditors to detect the same misstatement recorded in the financial statement (Lima, Taylor and Cook 2016). In this report, it presents an analysis of some of the significant audit risk areas which exist within the Tassal group of company. The report aims at identifying the audit risk which the organization may experience. Also, it is currently exposed to, some of the major implication which the risk may cause in the process of identification.
In the financial statements and some of the major procedures which are existing in the course of the verification of the risk and some of the techniques which can be used in ensuring accuracy and reliability in the process. 2.0Company Background The company Tassal was opened in 1986 and has expanded tremendously since its inception and currently carrying out businesses in stock exchange ASX since 2003. For over the past 25 years of the company operation, it has been able to bring the delicious and some of the freshest water fish like Salmon to delicious food on our table.
The company has striven to achieve excellent operation through the production of the quality product, and it always pays much attention to consumer needs having the information assurance. This company has thrived well in ensuring that the product which they are giving their customers. 3.0 Assessment of business risk Lima, Taylor and Cook (2016) Define business risk as to the probability or the unforeseen uncertainty that may cause loss of profit in the firm.
There are several risks which business can be exposed to, and they have several classifications. Holbrook and Brooker (2013) describe audit risk as to the probability of the financial statements not reflecting the fair picture of actual transactions in the company. Underlying factors of audit risk are some of the fundamental gateways to understanding the audit risk models. There are several audit risk areas which business are exposed to, and they include the following areas of classifications: -
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