This assignment is a research component within the Auditing Practice assessment

Research Project

This assignment is a research component within the Auditing Practice assessment. There is no model answer to this assignment. You need to conduct desk research and based on this and any anecdotal evidence and/ or personal experience consider the questions given.

Topic

Inherent risk, in a financial audit, measures the auditor's assessment of the likelihood that there are material misstatements due to error or fraud in cycles before considering the effectiveness of internal controls.

Industry Sector of Interest

Consider the risks inherent to the retail industry such as grocery supermarkets and conduct research about the following questions.

1. List and describe the possible inherent risks in the retail industry. (20 marks)

2. Determine which inherent risks may currently be considered critical. (20 marks)

3. Determine which practices might address the inherent risk identified in’2’ above.

(10 marks)

· The front style for your answer should be set to “Time New Roman” size 12 with 1.5 line spacing, 2.5cm margin & A4 page layout.

· . All students are responsible for familiarizing themselves with the policy, seeking further advice if necessary and complying with it at all times. If you use any material, for example textbooks, journal articles etc. to support your answer, you are to use the Harvard Style of referecing in your answer for both in-text and bibliography referencing (students are expected to use external material and articles). Referencing: The Harvard (AGPS) style -