Key Topics: Business risk, risk of material misstatement (ROMM), classification of investments, compliance with laws and regulations.

Description: In this case study question you will be required to assess the significant business risks related to a listed entity operating as a retailer in the online grocery market. The business is undergoing a lot of change with international expansion as well as entering into a joint venture agreement. 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 design audit procedures in respect of the classification of the investment (noting specific consideration of the classification assertion) as well as the need to consider a data protection issue and the responsibilities of the auditor in relation to the listed entities compliance with laws and regulations.