Integrated Audit – Risk Assessment Boeing company
Based on the examination of the entity’s financial statements and notes you will perform a risk assessment and identify the significant account that poses the most risk (e.g. Goodwill/Allowances/Valuation for DTA/etc.). For the selected account determine which assertions are relevant (completeness, existence, accuracy, valuation, obligations and rights, presentation) and provide responses and explanations for:
a. If the account is significant/non-significant/material non-significant
b. If the account is an estimate
c. Risk of Fraud (Yes/No)
d. Risk of Error (Yes/No)
e. Inherent Risk (Significant/Not Significant)
f. Control Risk (Higher/Lower)
g. (and as a result of the above the Risk of Material Misstatement RoMM of low, moderate or high)
Hint: The analysis you performed based on bullets a-g should support your conclusion that this is a significant high risk account. If it does not consider picking a different account.(i.e. why the account is significant, why there is a risk of fraud or error relative to the assertion, why the inherent risk is assessed as non-significant, why control risk is assessed as higher, and why RoMM is assessed as high, etc.)