Executive Summary : ' Austral Pvt. Ltd Contracts With Import And Export Industry
2528 Words11 Pages
Austral Pvt. Ltd deals with import and exporting food product in various part of globe. Dairy, fish, meat and seafood product are the product they trade with. The firm would have the greatest competitor risk in import and export business is the duplication and quality of goods. These competitors company advantage of the lower cost of expenses such as materials, Inventories and labour cost to produce the product to the same consumer market. Natural risks if they mentioned, then earthquakes, floods, landslides and storms were decrease consumer, delay the transportation and deliver and distribution of products. In case of food products maintaining quality of food become most challenging part. However, misstatement of accountability is negatively impacting on financial position of company.
Risk assessment, evaluation risk and the impact of the risk on the controlled environment of an import and export industry identification of the inherent risk. However, the auditor needs to plan for reduction in risk and to improve productive approach for present and in the future in two ways:
Firstly, identify the inherent risks of import and export that effect to the firm related to financial statement and the overall performance. Secondly, auditor should study internal control which further will understand the control systems of the organization.