Audit risk and planning assignment

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AUDIT RISK & PLANNING (20% of overall subject assessment)
You and your colleague are required to prepare a client evaluation report to the senior partners of your auditing firm. Client evaluation includes: evaluation of the integrity of management; identifying risks; assessing competence to perform an audit; and other ethical and legal considerations.
This report will be used to provide preliminary information as to whether or not the auditing firm should consider tendering for the audit of Immuron Limited (Immuron), a pharmaceutical company.
Assuming that the audit for Immuron will be coming up for tender, you are required to prepare a report based on your research. This will require extensive research and critical analysis of the annual report of Immuron for the year ended 30 June 2017 and any other information that you have obtained (a good source of information would be the company website). The Immuron annual report is available at:
http://immuron.com/investor-centre/company-securit…
under the “2017 ASX announcements” caption.

I have an auditing assignment. There are the following two questions to be done:

5. Using the Immuron 2017 annual report, discuss four (4) areas/accounts of concern. Why do you consider the chosen areas/accounts to be ‘risky’? (8 marks)
6. Based on your understanding of the client and assessment of the client’s business and audit risks, would you undertake the audit? Why? (4 marks).

The total words should be 800-900. If you don’t understand still, I m attaching the following link with these questions where you can see the more details.

https://lms.latrobe.edu.au/mod/resource/view.php?i…

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