Business Risk Analysis Project 1
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Business Risk Analysis Project 1
Introduction and Project Requirements
The objective of this project is to provide you with an opportunity to assess the business risks and perform analytical procedures for a real world company. The project focuses on the following categories of information related the understanding the entity and its environment:
· Nature of the entity
· Industry, Regulatory, and External Factors
· Objectives Strategies, and Business Risks
· Entity Performance Measures and Monitoring
· Management
· Governance
Part 1 – Introduction and Background of the company (IKEA)
IKEA is the company that will be used. Provide the background of the company. This will be a general background that gives details of when established, what industry the company falls into, the executive make up, and financial analysis.
Part 2 – Assessing Business Risks
Complete the 6 questionnaires (use WORD templates below) that is to be used for assessing and documenting your assigned company’s business risks. In completing the questionnaire, you need to attempt to answer each question and then determine the possible effect(s) on the audit.
Information needed to identify the business risks can be obtained from the company’s annual report, FORM 10K, and proxy materials. Typically, these documents can be obtained from the company’s website. The company’s website also contains information on the audit committee (e.g., charter), internal audit function, and corporate ethics (e.g., conflict of interest policies). You should also consider obtaining a financial analyst’s report on the assigned company. If you cannot find a free analyst’s report, do not pay for one.
There may be some questions that you will not be able to answer. If you cannot answer a question, respond “information not available.”
Part 3 – Performing Analytical Procedures
You are also required to perform analytical procedures (ratio analysis) on the selected company for 3 years and compare those ratios across time, and to industry data or a major competitor. For example, if you are assigned MGM Mirage you can compare MGM Mirage to industry data or to a competitor of similar size (e.g., Las Vegas Sands). {Fill in names if different sizes}
You should investigate whether there are industry-specific ratios that may be helpful in conducting the analyses. Industry information can be obtained from sites such as http://finance.yahoo.com and http://www.bizstats.com.
Part 4 – Complete a Synopsis/Conclusion
For the last part of the final project, you will need to complete a synopsis or conclusion of what you learned and conducted during the research. Discuss some of the risk that you noticed that the company may be liable for if they were audited.
Final Project must be in APA formatting with the questionnaire included in the final project. Make sure that you use in-text citation where applicable. You will need to have a cover page and reference page (at least 3).
3
Client Name: Entity and Environment Category: Nature of the Entity
Year ended:
Completed by: Reviewed by: Business Risk Factors Response Possible Effect(s) on the Audit What are the entity’s major sources of revenue and what is the nature of its products and/or services? Who are the entity’s key customers? Who are the entity’s key suppliers? What is the nature of the entity’s organizational structure? Where are its major locations? What are the entity’s major assets? What are the entity’s major liabilities? What are the entity’s sources of financing, and current and prospective financial condition? (Note that your ratio analysis may help answer this question.)
Are there any potential related parties? Were there any significant events and transactions (e.g., acquisitions or disposals of subsidiaries, businesses, or product lines) during the year? Does the entity have any major uncertainties or contingencies (e.g., lawsuits)?
Client Name: Entity and Environment Category: Industry, Regulatory, and External Factors
Year ended:
Completed by: Reviewed by: Business Risk Factor Response Possible Effect(s) on the Audit What is the level of competition in the industry and does this level of competitiveness present any risks for the entity? Do technological factors present any risks for the entity? Do general economic conditions present any risks for the entity? Does the regulatory environment present any risks for the entity? Does the legal/political environment present any risks for the entity? Do accounting principles, including those that are industry-specific or determined by a regulatory authority, present any risks for the entity? Do social/environmental factors present any risks for the entity? Are there any other external factors that present a risk for the entity?
Client Name: Entity and Environment Category: Objectives, Strategies, and Business Risks
Year ended:
Completed by: Reviewed by: Business Risk Factor Response Possible Effect(s) on the Audit Does the entity set entitywide objectives and are they supported by strategic plans? Does the entity have clear objectives in terms of a budget, profit, and other financial and operating goals? Does the entity have an entity risk assessment process that includes estimating the significance of the risks, assessing the likelihood of their occurring, and determining the actions needed to respond to the risks?
Client Name: Entity and Environment Category: Entity Performance Measures and Monitoring
Year ended:
Completed by: Reviewed by: Business Risk Factor Response Possible Effect(s) on the Audit What key performance indicators does the entity use to measure performance? Does the entity benchmark its performance against its industry and major competitors? Does the entity consider financial analysts’ research and earnings reports? Are there communication channels within the entity for individuals to report suspected improprieties? Does the entity have an internal audit function? Does the internal audit function have a charter? Who does the chief audit executive report to?
Client Name: Entity and Environment Category: Management
Year ended:
Completed by: Reviewed by: Business Risk Factor Response Possible Effect(s) on the Audit Do one or a few individuals dominate management and operating decisions? Does management demonstrate the appropriate “tone at the top,” including explicit moral guidance about what is right or wrong? More specifically, has a code of conduct been established that includes appropriate entity policies regarding acceptable business practices and conflicts of interest?
Are these policies adequately communicated to employees?
Does management adequately monitored business risks? Does management encourage that everyday dealings with customers, suppliers, employees, and other parties be based on honesty and fairness? Has management established and maintained effective internal control over financial reporting? Is there a motivation for management to engage in fraudulent financial reporting? (Refer to Tables 4-4 to 4-6 in the textbook for a list of specific indicators that might indicate fraudulent reporting.) Has management adopted sound accounting principles? Does management adequately consult with its auditor on accounting issues? Is management willing to adjust the financial statements for misstatements that approach a material amount? Is there high turnover of senior management, legal counsel, or board members? Is there a known history of securities law violations or claims against the entity or its senior management alleging fraud or violations of securities laws?
Client Name: Entity and Environment Category: Governance
Year ended:
Completed by: Reviewed by: Business Risk Factor Response Possible Effect(s) on the Audit Does the board of directors and its major committees (e.g., audit committee) contain an appropriate number of “independent” directors? Are there regular meetings of the board of directors to set policies and objectives, review the entity’s performance, and take appropriate action? Does the board of directors ensure that entity’s objectives are congruent with the major stakeholders (e.g., investors and creditors)? Does the audit committee have a charter? Does the audit committee have adequate resources and authority to discharge its responsibilities? How often does the audit committee meet annually? Does the audit committee meet individually with the external auditor and internal audit executive without management present?
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
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