ACCOUNTING 312

The Warehouse Group Limited

Group D Andrew Peters Holly Ashe Jaya Thapar Chris Bo Liu Lawrence Foy

INTRODUCTION
The Warehouse Group Limited Listed Company The largest department store retailer in New Zealand that sells a broad range of goods

Andrew Peters

MISSION STATEMENT
Where People Come First and Quality is Affordable

1. Quality Customer Service

2. Competitive Prices

Andrew Peters

WHY IS IT AUDITED?

Holly Ashe

MAJOR INHERENT RISKS

Foreign Exchange Losses Implication: Audit Risk of Account Balances Chief Executive Officer Succession Implication: Integrity of Management, Specific Assertions

High Competition Implication: Integrity of Management, Client Viability

Jaya Thapar

MAJOR CONTROL RISKS

Check Out System - Diversion of Cash Implications: Audit Risk of Specific Assertions Completeness and Existence Online Sales Verification Implications: Audit Risk of Specific Assertions: Accuracy, Cut Off, Viability (of online sales) Performance Incentive Payments Implications: Integrity of Management, Client Viability, Audit Risk of Specific Assertions: ?

Chris Bo Liu

CONCLUSION
The competitive retail environment, the introduction of new management, and the current volatility of financial markets suggests there is a medium-high level of inherent risk. Control activities associated with online shopping and cash management at checkouts suggets control risk is low medium.

Lawrence Foy

CONCLUSION
Inherent risk and Control risk are positively correlated with the level of material misstatement.
Risk of material misstatement is medium.

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Low Medium Hig h Implication of our risk assessment: Able to design audit procedures that test specific assertions relating to areas of high risk in the financial report.
Lawrence Foy