Question

Scenario 1

Jupiter Mining Ore Limited is a major mining and exploration firm with operations in multiple galaxies. The company is looking to further expand its operations those solely within its core operations. The company’s total assets exceed $100 billion, liabilities of $45 billion, and annual sales close to $200 billion. The preferred auditor is Bad Eyesight Auditors.

Required: Consider the following scenarios independently to determine the type of risk, level of risk, and extent of audit work that may be necessary:

Regulators have recently changed the method and requirements for estimating mining ore sales. The new requirements needed Jupiter Mining Ore Limited to recode significant areas of its electronic recording system. The new requirements, however, did not require additional training of existing accounting staff.

• Type of Risk

• Level of Risk

• Expected Level of Audit Work

• Justification

Answer 1

According to the given question we have that

TO FIND :-

• Type of Risk

• Level of Risk

• Expected Level of Audit Work

• Justification

for the question

Regulators have recently changed the method and requirements for estimating mining ore sales. The new requirements needed Jupiter Mining Ore Limited to recode significant areas of its electronic recording system. The new requirements, however, did not require additional training of existing accounting staff.

now  finding the Type of risk —-

Inherent Risks: Inherent risk relates to the opportunity that could not be preserved or disclosed by the entity’s internal power. This opportunity could occur as an effect of the complexity of the client’s type of transaction. Someday, that kind of game could join to the complexity of business activitie , andd need high engagement with experience. The opportunity is usually high if the business or also includes deeply with human experience. For example, the display in the compound secondary device. That set of opportunity could likewise be influenced by the outside conditions

Level of risk —- High

Due to advances in drilling ordinances and laws overseeing estimating for drilling services, Jupiter Mining Ore Limited had to significantly modify the position and capacities of its bodily account companies, and bodily account rules through the latest timede by some problems still unsolved.

The expected level of account work —- Rely on command and perform a medium level of substantive examinations

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