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audit inherent risks

1. Identify what you consider to be the ‘key’ inherent risk factors that could have an impact on the audit of The Suncorp Group for the year ended 30th June 2011.
For each of the inherent risk factors identified, state why you consider the issue may create the risk of potential misstatement in the financial statements of the Suncorp Group for the year ended 30th June 2011. Also, identify any information (audit evidence) you would have gathered during the audit to establish the true nature and effect of the inherent risks you have identified. [To score well in this assignment you are strongly encouraged to research Suncorp’s financial results, the financial press, and other business media to obtain a better understanding of the inherent risks]. You are expected to identify seven(7) critical inherent risks.
(60 Marks)
2. Using the information you have collected to assist you in answering question 1 (above), explain and justify your overall assessment of inherent risk for Suncorp. Using the audit risk model and the risk factors discussed above, discuss how your assessment of inherent risk will impact on the evidence mix for the planning of the audit of the company you have chosen. (HINT: Refer to Chapter 12 of the textbook).
(20 Marks)
Professional presentation is important in completing this assignment
Refer to the marking guide contained in appendix five and guidance notes in Appendix
(10 Marks)
(Representing 30% of the overall grade for the unit)
(90 Mark


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