Choose a company that interests you and access their most current financial statements, MD&A and SEC filings. Using this information and any additional information you can gather about the industry, economy, and regulatory environment the company operates in complete a Risk Assessment for the company’s audit.
You should have multiple risks in each area. Risk areas may include competition, economic, industry, regulatory, environment, etc.
At a minimum, your risk assessments should include the following:
- Risk description
- Estimated impact (low med high) based on materiality
- Estimated likelihood (low med high)
Use an Excel table to present your risk assessment. This workbook will then become your audit working papers.