Auditing of Vodafone Australia: Key Business Risks and Risk of Material Misstatement

Running head: AUDITING
Auditing
Name of the Student:
Name of the University:
Authors Note:

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AUDITING
Contents
Key business risk:............................................................................................................................2
Risk of material misstatement:........................................................................................................3
Conclusion:......................................................................................................................................6
References:......................................................................................................................................7

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AUDITING
In order to conduct audit of an entity efficiently, it is important to have proper
understanding and knowledge about the entity and its environment. Only with proper knowledge
and understanding about the entity and its environment it would be possible to discharge the
responsibilities of an auditor towards the audit of the entity (Cao, Chychyla and Stewart, 2015).
Vodafone PLC is one of the biggest telecommunication companies in the world and operates in
the country as Vodafone Australia. The company has its shares listed in the Australian Securities
Exchange (ASX). The company provides telecommunication services in the country for number
of years now. Over the years the company has made a significant impact on the
telecommunication industry in the country. In order to understand the inhere
Key business risk:
The company operates in an extremely competitive telecommunication industry. The key
business risks of the company are as following:
Ever increasing competition: The competition in telecommunication industry in Australia is
immense. Over the last decade the industry has seen huge increase in number of firms. Vodafone
must strategically handle competition to keep its market share intact.
Customer preference: With increasing competition, the business is facing the challenge of ever
changing customer preferences in terms of services. To meet the expectation of the customers the
company must continuously improve its services (Jans, Alles and Vasarhelyi, 2014).
Dwindling profit margin: The profit margins in the business is decreasing with passing of each
year due to increase in cost of operations and reduction in revenue.