Question

Business Objectives:

Reduce delivery and distribution time of products and services by adding additional warehouse locations

Business risks – you have to state explicitly in the paper what the business risks are (i.e., name them) and identify and state the auditing standard that is associated with business risks. A general statement will not work. Again, this is an action item on your part required by the rubric. The business risks must relate to the business objective you selected.

Answer 1

In order to reduce delivery and distribution time of products and services, we are adding additional warehouse locations.

But because of adding new locations, we may face the business risks such as controls deficiency at the new location and lack of competent staff employed.

The auditing standard which is associated with business risks is ISA 240 "The Auditors' Responsibility relating to fraud in an audit of Financial Statements'