AUDITING AND ASSURANCE.

Running head: AUDITING AND ASSURANCE
Auditing and Assurance
Name of the student
Name of the university
Author Note

1AUDITING AND ASSURANCE
Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................4
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

2AUDITING AND ASSURANCE
Executive summary
The Australian bank named National Australian Bank is public bank that operates in the
Australia and New Zealand. The bank operates in the banking and financial service. The bank
earns a revenue of $19,101 billion, and earn a net income of $5,554 billion. The bank has a total
assets of $806, 51 billion. The annual report of the bank has been analyzed. The key business
risk, key account balances at risk of material misstatement have been identified. The relevant
audit procedure have also been discussed in the report. The audit procedure will provide the
effective audit evidence that need to confirm the existence of the business risk assertion.

3AUDITING AND ASSURANCE
Introduction
The Australian bank named as National Australian bank is the largest bank and the
financial organization in Australia. The bank was ranked fourth in terms of capitalization market
rate, earnings and the numbers of customers. As on the basis of market capitalization the bank
was ranked 21st in the world. The bank has a huge size of total assets and this is the reason the
bank was ranked 50th in the world. The company operates in banking and the financial services
and the bank provide service to the people of Australia and New Zealand. The bank has 1590
branches and 35,063 employees all over the world (Nab.com.au. 2019). The banks earns a
revenue of AUD$19,101 billion per year and is listed on the ASX stock exchange of Australia.
The net income of the company for the year 2018 is AUD $ 5,554 billion per year. The products
that the bank offers are the occupation banking, customer banking, wholesale banking and
affluence management. The business risk is a risk that all company’s and the organization
experiences at some point of time. The business risk is a factor which threatens an organization
ability to attain the desired targets and financial goals. The sources of this risk can be internal
and external such as internal management and the overall economy. However, the companies can
protect themselves from this risk by adopting the adequate the risk management strategy. The
motive of this report is to analyze the key business risk and the key assertion of risk of National
Australian bank. The related audit procedure and the audit evidence for the identified risk has
been stated and discussed in the report.
Discussion
The common business risk in a company are the competitive risk, profitable risk,
operating risk, lawful risk, compliance risk, strategy risk, program risk and many others.
According to the annual report, the company is undergoing through an economic risk, financial
risk, compliance risk and operational risk. The company’s undergoes through an economic risk
as because the relevant changes in the economy will increase and decrease the sales of the
company. The government debt of the country is exceptionally high for large advanced
economies (Heltzer & Shelton 2015). This results in impacting on credit and funding cost. The
debt of Australian and New Zealand government remains low by the benchmark of the advanced
economy. The decrease in the sovereign credit rates could have unfavorable effect on the