AUDITING AND ASSURANCE SERVICES ASSIGNMENT
One.Tel Case
Strategic Business Risk Assessment, Inherent Risk Assessment and Preliminary Going Concern Assessment
Nature of the Entity's Business
One.Tel was launched in Sydney, Australia in May 1995. They were described as a global telecommunications company offering a fully integrated product list including low-cost international and national calls, Internet services, prepaid and post paid calling cards plus GSM mobile phone services. Their strategies as customer-focused and dedicated to providing innovative, quality telecommunication services at reduced prices. Details of total revenue by geographic segment for the year ended 30 June 2000 are as follows:
|
Country
|
$M
|
%
|
|
Australia
|
429.4
|
64
|
|
UK
|
144.7
|
21
|
|
France
|
15.1
|
2
|
|
Netherlands
|
36.6
|
5
|
|
Hong Kong
|
39.2
|
6
|
|
Other
|
13.2
|
2
|
|
Total
|
678.2
|
|
Discussion Questions -
1. List and discuss several factors that would have contributed to an increased inherent risk assessment at the financial report level. Also identify which of these factors may be identified during the strategic business risk assessment.
2. List and discuss several inherent risk factors that would have contributed to an increased inherent risk assessment at the account balance level.
3. Do you believe that the area of going concern should be assessed as high, medium or low? Identify the factors that are the basis for your decision.
Attachment:- Assignment File.rar