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Auditing Major Assignment - Coca Cola

   

Added on  2020-07-22

10 Pages2748 Words93 Views
Auditing MajorAssignment

Table of ContentsQuestion 1........................................................................................................................................3Questions 2.......................................................................................................................................5

Question 1Identification of risk of material statementAudit risk is a risk which a auditor may fail to change their opinion on misstatement inthe financial statements. The beverage industry is the fastest growing industry which have upto 7billion potential consumers around all over the world. In the present report audit risk analysis isconducted of the coca cola company. In respect to develop overall audit plan the auditor isrequired to evaluated the risk inherent in the financial statement level. Further, for developing arisk program it is important for the auditor to relate the same evaluation of material that can bedifferent classless of transaction and account balance at the different level. Inherent risk in auditis known as the risk which is posed by an omission and error in a financial statement because offactors accept than a failure of control (Judd, Olsen and Stekelberg, 2016). Therefore, theprocess which apply for measuring the audit risk there is required to determine the entitybusiness risk. It can be done through evaluating the different aspects that is external factor,nature of entity governance measurement and performance etc. Here given below are fewinherent risk which is considered that are as follows:Sample which is selected for auditing at the time of planning the audit do not reflect thetrue sample of the transaction which can be stated as one of the biggest risk of the Cocacola company.Second one is weak internal control system: It is identified that internal control of Cocacola company is fine but it is not much effective in order to find out the miss happening,risk or any type of fraud. Further, representation of the financial statements, as it can be mis presented due of lackin understanding in the accounting staff members or because of the complexity in thetransactions (Gul, Hsu and Liu, 2017).

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