Scenario: You are a senior auditor in the firm of EA Partners. The firm has decided to take on a new client and has requested you to compile a risk assessment report on the firm, as part of the initial stage of the audit plan and preparation. You have been chosen to undertake the analysis because you are familiar with the industry in which the firm is situated and your fellow seniors believe this will give you an advantage when uncovering the inherent risks of the new client. Your fellow seniors look forward to reading your report. After you have given your report to the other seniors, they decide that your team will be handling the audit. The second part of the assignment is to give a briefing to your team about the new client.
Task: Chose an industry with which you are familiar. You may be connected to the industry because of a family business, you may have worked in the industry or you may be very interested in the area. You are required to build a risk assessment of the new firm using any research means at your disposal; however you should include in your research information released by the media (news, newspapers, and industry magazines) and academic information. After you have uncovered the relevant inherent risks, you are required to suggest suitable control elements that may mitigate the impact of those risks on the firm. The report should be concise.