In this assignment you are an audit senior that is planning the audit of the financial statements of Performance Sports Group Ltd (PSG ticker symbol on the Toronto Stock Exchange) for the year ended May 31, 2016. Performance Sports Group Ltd. has been a client of your employer, an international public accounting and consulting firm for many years. The preplanning phase of the audit has been completed and you have accepted the engagement. All information used to prepare this report should be from PUBLIC sources. State any assumptions you find it necessary to make.
Required: Prepare a report with the following components: 1. Develop Performance Sport Group Ltd’s risk profile. When performing analytical procedures, please ensure you tie in the results of the analytical procedures to the impact on audit procedures (5-6 pages). 2. Determine an overall risk assessment by considering each component of the audit risk model. You may have to consider the various risks by cycle if applicable (2-3 pages). 3. Set overall planning materiality and support your decision (1 page). 4. Identify “key audit issues” you are concerned with prior to the audit execution and determine their impact on the key components (cycles).