Key Topics: Business risk, risk of material misstatement (ROMM), outsourcing the credit control function, holiday pay obligation

Description: In this case study question you will be required to assess the significant business risks related to a listed entity in the pet related products space. The business is undergoing a lot of change with store expansions expected during the year. The requirement also wants you to consider the risk of material misstatement and as part of this the question expects you to prioritise your risks. You will need to set materiality using the benchmark requested by the audit engagement partner. There is a sub requirement to discuss the considerations needed when part of the business is processed through a service organisation and finally in relation to the holiday pay obligation there are some issues with the internal controls of the payroll system and the question wants you to design some audit tests around this.