Risk Factors to Auditing Process - Assignment Example

Secondly, planning and designing the audit approach may affect the client due to inadequate time. Auditing requires enough time and thus fixing time within the company’s busy schedule may delay the process.  Finally in a high competition industry, determining inherent risk is important since there are higher complex valuation issues and thus more experienced staffing is needed.  This will affect the client in the sense that the cost of increased staffing digs into the company’s profit margins which are minimal in such an industry.

Question 4 The year 1998 was faced with allegation from the delloitte auditors on misappropriation of the audit results due to the wrong facts provided by the vice president of Just for Feet. Below are the risk factors that are likely to have affected the company. Consumer related risks. As a result of loss of consumer‘s satisfaction as well as health regulations. Market related risks due to lack of market information to the end users. Operational risks due to the interruption of the production cycle as well as late delivery of services.

Social and political risks due to fraud claims. Liability risks due to legal actions against the company. Question 5The affected parties here were Just for Feet, Logo Athletics, Reebok and Deloitte Being in Thomas Shine’s position; working related ethics did not allow him to engage in such a fraudulent conversion with Don Allen Ruttenberg.  The wise decision here was to ask Ruttenberg to organize a conference where the executives of the vendor companies would decide and thus he would have avoided the trickery.