Contact Us
Sign In / Sign Up for FREE
Go to advanced search...
Nobody downloaded yet

The Issue of Business Risk - Literature review Example

Comments (0) Cite this document
"The Issue of Business Risk" literature review indicates that there was a general need for a radical change in the auditing process as the conventional and more traditional methods failed to offer the desired results and insulate the companies from the effects of taking excessive risks…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.7% of users find it useful
The Issue of Business Risk
Read TextPreview

Extract of sample "The Issue of Business Risk"

Download file to see previous pages The new approach was based on assessing the risk in business as well as process level risk while performing the audit and as such, the fundamental process of performing audit took a new turn to accommodate the changes that are perceived to take place in the 21st century.

There are many studies including Humphrey, Jones, and Khalifa that assess the impact of this approach on the actual audit engagements and as such discussed at length as to what is being done and what is required further to make this practice more effective to cater to the needs of the modern business practices. Further studies also indicated the overall effectiveness with which this new methodology has been implemented by the audit firms while conducting the audits.

Business Risk Approach was believed to be initiated by the large firms that were under constant criticism from various quarters for their failure to critically assess and identify the failures of the firms like Enron. Thus business risk approach is not considered as feasible for the smaller firms that may not have the required expertise and depth to conduct appropriate business risk audits of their clients.

The trends in the audit industry indicated that there is a gradual increase in the costs of executing the existing practices because the overall complexities of doing business have increased to the manifold in the current times. The greater cost on the imparting necessary knowledge and skills to audit staff as well as the more focus on the use of more value-added services, audit, as a profession integrated critical changes into itself to cater to the more challenging requirements of the new business entities that become more vulnerable to the risk owing to more volatile nature of the business. (Eilifsen, Knechel, & Wallage, 2001)

Business risk is generally described as the risk that the business will achieve its intended objectives. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(The Issue of Business Risk Literature review Example | Topics and Well Written Essays - 1500 words, n.d.)
The Issue of Business Risk Literature review Example | Topics and Well Written Essays - 1500 words.
(The Issue of Business Risk Literature Review Example | Topics and Well Written Essays - 1500 Words)
The Issue of Business Risk Literature Review Example | Topics and Well Written Essays - 1500 Words.
“The Issue of Business Risk Literature Review Example | Topics and Well Written Essays - 1500 Words”.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Issue of Business Risk

Environmental Issue in Business

... countries of the world, like, Finland, Sweden, Canada and France, have adopted models to produce nuclear energy in a safe way. On the other hand, Chernobyl and Three Mile Island encountered accidents from their nuclear reactors. Therefore, it is viable that lessons should be learnt from the past accidents and to analyze the benefits or hazards of nuclear power. For instance, in the accident of Three Mile Island’s nuclear reactor, the lack of proper training to operate the reactor and major flaws in its design were found to be responsible for the accident (IAEA, 2010). Therefore, when constructing or building a strong nuclear power plant, it is imperative that such design issues and safety issues are taken care of. The next significant...
10 Pages(2500 words)Essay

Business Communications Risk Management

...? Business Communications Risk Management ID Lecturer Federal Trade Commission (FTC) is a US agency which was founded in 1914 by the FTC Act. Its main aim is to promote the consumer protection as well as get rid of the perception that the regulators have regarding the anti-competitive harmful business undertakings and practices. The main philosophy is to eliminate the coercive monopoly which exists as such. The business communication processes are highlighted by its mission to investigate issues which have been raised by reports coming from the domains of businesses and consumers, congressional inquiries, reports propagating within the media and so on (Loza 2001). The FTC investigators can take care of a single organization or even...
1 Pages(250 words)Essay

Business Plan Issue

A few years ago I did some consulting work for a family member that was starting a new company. The firm needed help creating an implementation plan on how to reach the commercialization phase for a new product the firm had developed. The company had already submitted a pre-patent application and the lawyers believed that that the chances of getting the patent approved was very high. Legal protection was one of the variables that were holding back the full launch. Another problem the company faced was a lack of capital. The company had been incorporated for over a year and half doing research and development without generating any revenues. A lack of operating cash led to the failure of the business. This company in its early st...
4 Pages(1000 words)Essay

Business Risk Management

...? Business Risk Management A heavily anticipated report on working conditions of Apple supplier documents dozens of outstanding labor rights violations. Some of these labor violations cover; excessive overtime, unpaid wages and salaries that are not enough to cover basic living expenses and also mistreatment of its workers (Froeb & McCann, 2009, p. 243). Wages and benefits: More than 60% of the workers in three of Apple supplier factories in China argue that their salaries fall short of their basic needs. These workers argue that the monthly salaries they are getting from their employer are too small (Sad grove, 2005, p. 132). The average of three hundred and fifty dollars they receive is as too low to cater for the needs and demand...
4 Pages(1000 words)Assignment

Business law- legal issue

...? Legal Writing Paper Legal Issue The legal issue in this study will entail; what are the Minority Shareholders’ remedies where the company is being run oppressively? The current business world is engulfed with sophistication, business persons are inclined to form corporate body to run their business units. This is being seen as panacea to escape the risky concept of individual liability that is in a business where there is no distinct legal entity between the individuals and their businesses. However, the doctrine of incorporation is not without its challenges. A problem usually arises where promoters of a limited liability with different financial muscles and capabilities are unable to agree on corporate affairs. Majority shareholders...
6 Pages(1500 words)Essay

Issue in global business

... challenges in the present, despite a high point in the latter part of the twentieth century. “Synchronized economic slowdowns in Asia, Europe and the United States, the three engines of global commerce, have decimated international trade” (Kurlantzick, 2003). This article presents one side of the issue in terms of these abovementioned regions and their impact, and it does it in great detail. The author is very convincing in arguing that global expansion is something that carries a lot more risk in the present than it used to in the past, because of regionalism being more widespread. A lot of this expansion of regionalism has to do with the interstices between the relatively recent formation of the EU and the valuation of law in society...
4 Pages(1000 words)Essay

Distinguish between business risk and financial risk

... Financial Management August 10, Distinguish between business risk and financial risk. What gives rise to or causes each typeof risk? A business is a game of risks and rewards. Rewards in the form of high sales, good profits and strong brand equity; on the other hand are risks; the factors which can threaten the functioning of a business and if not dealt with in a planned fashion, can threaten the survival of the business. Any business can face risks; which are broadly categorized into business risk and financial risk. Business risk pertains to the operations of the business and is faced when the business does not generate enough revenue to cover its operating expenses. Business risk can be divided into two subcategories; systematic risk...
2 Pages(500 words)Essay

Competition and Business Risk

... s Table of Contents List of Figures 3 REFLECTIVE REPORT ON STRATEGIC MANAGEMENT OF HEAD START FOOTWEAR 4 1.0Introduction 4 2.0 The business strategy (BSG)-online game 4 2.1 The benefits of the BSG- online game 4 2.2 Weaknesses of the business risk strategy game 6 3.0 Teamwork evaluation 7 3.1 Using the Belbins typology-analyse my team members 7 Besides, they were also resource investigators due to their curiosity, extroverted and enthusiastic traits. According to Fisher, Hunter and MacRosson (2001), they enjoy and like exploring innovative opportunities. Yuan and Niki are humble with a very strong sense of inquisitiveness and readiness to establish the possibilities of something new coming up. Their core was exploring what resources were...
11 Pages(2750 words)Assignment

Issue about global business

of the Business of the Concerned 12 June Outsourcing- A Blight on the American Ingenuity and Entrepreneurship Thereis no denying the fact that outsourcing is depriving millions of Americans of jobs and livelihood. It is a fact that the American manufacturing sector is facing a stiff competition from the emerging economies like China and India, owing to the low labour costs in these nations. However, instead of relying on the American ingenuity and entrepreneurial spirit, the American manufacturers are giving in by outsourcing their manufacturing activities to the Asian economies. This is indeed bad considering the fact that the unemployment rate in the nation is already quiet high. Under such circumstances, outsourcing the manufac...
1 Pages(250 words)Essay

Business Risk Approach

Business Risk Approach
Internal Control Weaknesses
Specific risk of fraud or error
Reporting of financial status of the company is experiencing ineffectiveness and internal control by those who are responsible for the management of the enterprise. The manager of the factory by the name John Jones only prepares a Purchase Requisition in respect of the raw materials required. It specifies three items of information about the necessary materials, the quantity required, and the chemical description. There is no evidence where he does financial reporting and internal control over the company (Rittenberg, Karla, Johnstone, and Audrey, Gramling, p.22).
The specific risk of fraud or error that might occur will be the error of...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Literature review on topic The Issue of Business Risk for FREE!

Contact Us