Contents

• ABSTRACT
• PART “A”
• INTRODUCTION
• History
• General and Industry-specific economic trends and conditions
• Competitive environment
• Product information
• Customer Information
• Supplier information
• The Effect of Technology
• Laws and regulations affecting the industry
• BUSINESS RISK
• INHERENT RISK
• PRELIMINARY ANALYTICAL PROCEDURES
• PART “B” Calculating the preliminary assessment for materiality
• Bases for Evaluating Materiality
• Starting and Ending points
• Internal Control Weakness
• Bibliography

Description

This report is based on Cloud 9 Pty ltd which was originally founded in 1980 by R.A. McLellan. In this report we are going to discuss the audit plan in which we will state the background of Cloud 9, business it carries and the industry that it operates in. We are also going to access the company for business risk and identify the areas where there may be an increased risk of material misstatement. Further we are going to calculate the preliminary assessment for materiality. At the end we will show the flowchart of the accounting process for Cloud 9 and state where we think there might be an internal control weakness in the process.