Analyzing Risk in Audit of Financial Reports: JB HI FI Limited

Master of Professional AccountingUnit code: ma611
Auditing

Contents
Introduction...........................................................................................................................................3
Analytical procedures............................................................................................................................3
Inherent Risk at financial report level....................................................................................................4
Risk of material misstatement at the assertion level.............................................................................5
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8

Executive Summary
This assignment aims to understand a company and analytically analyse the risk involved in the audit
of such financial reports, it contain a detailed explanation on the analysis of the analytical
procedures performed on the company,
The inherent risk is estimated / assessed at both the financial reporting level where the control risk
and detection risk of material misstatements are identified and understood,
The risk involved at the level of assertions is made in a given format according to the nature of such
risk at such levels including a brief review of such assertions that can be taken while performing the
audit of such company.
Audit risk based on the risk of material misstatements due to the limitations of conducting an audit
is made in accordance with the available information of the company.
Three key account balances that could affect the risk of assertions are taken into consideration by
analysing the information present in the annual report of the company and steps to reduce such risk
through internal controls is provided to enhance the quality of audit.
The points considered in the assignment are based on the articles and annual report that are
published by the company in the website of the company JB HIFI LIMITED.