This paper tells that several risk factors should be taken into consideration in auditing the business risks of David Jones. According to Ali (2007), auditors usually examine business with the primary goal of identifying the operational and the financial risks that business is faced with…
The fact that David Jones sells its products across various countries means that it can apply price discrimination effectively. Price discrimination is possible in the company because the markets in various locations are independent. Britton and Jorissen (2007) assert that price discrimination occurs when the same products are sold at different prices in various markets. For instance, an iPhone can be costing $2000 in the USA yet the same exact iPhone costs $1800 in Australia. However, the concept of price discrimination presents a potential risk of loss of sales. This occurs in the sense that customers are knowledgeable and they might identify this difference in prices and seek alternative means such as purchasing the products online.
David Jones operates in a retail industry, which has its own regulations and practices. Adhering to all the regulations can sometimes be a daunting task and as a result, the company may result to ignore some regulations (Higgins, 2004). This scenario presents the possibility of compliance risk in which the company can be closed down by relevant authorities for failure to comply with set standards.
David Jones operates in a retail industry, which is very dynamic. Changes in tastes and preferences for various products for the company can plunge the company into strategic risk, which might result in loss of sales. The strategic risk in David Jones also occurs when other rival firms merge and increase their business performance, which may edge David Jones out of the market.
Financial risk is yet another potential business risk facing David Jones. The company has two main sources of finance, which is equity and debt capital. Monye (2006) claims that if the company decides to finance its operations from debts the going concern is threatened because it might not be in a position to honor its financial obligations. ...
Cite this document
(“Auditing and Assurance Service Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/610711-auditing-and-assurance-service-case-studyto-identify-business-risk-of-david-jones-retail-and-write-a-reflective-report
(Auditing and Assurance Service Essay Example | Topics and Well Written Essays - 1250 Words)
“Auditing and Assurance Service Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.net/finance-accounting/610711-auditing-and-assurance-service-case-studyto-identify-business-risk-of-david-jones-retail-and-write-a-reflective-report.
The financial crisis started in the year 2007 and spread with intense in 2008 despite of the central banks and regulators effort to calm it down (Merkel, 2012). In early 2009, the global economy was experiencing recession and the only way out was to focus was on preventing the downtown from prolonging to a great depression.
Justify your evaluation based on the information provided. [350 words] Business risks identified in the memorandum seem to be potential problems, but that is just the tip of the proverbial iceberg of the problems that are wrong with this company. First of all, the salaries for the people at the two top levels are Tony Lockett and Peter Roos.
The Company disclosed that the termination of the Project may result to the demand of the Group’s creditors for debt repayment, which will then give rise to a “material uncertainty regarding the Group’s ability to continue as a going concern” as it will be unable to pay such debts (Annual Report 2011, p.
Each of these elements controls the auditing profession in the UK in a certain way. This paper explains how Legislation, Common Law, and Regulatory and Professional elements control the auditing profession in the UK. It also assesses the adequacy of the auditing profession in the UK, with illustrations of recent corporate collapses.
One of the basic principle of valuing inventories is lower of cost or net realisable value. Any inventory is valued on this principle therefore firms tend to assess both costs as well as net realisable value of the inventory at the time of reporting them into their balance sheet.
The process involves with the system of providing financial information and also helps to provide such judgment which ensures the user to take decisions on behalf of the financial statement (Pearsoned,
The documents are usually prepared to verify whether the working results for a particular period. Auditors are supposed to show as precise financial situation of the businesses. A balance sheet is supposed to give a true reflection of
10 Pages(2500 words)Assignment
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Auditing and Assurance Service for FREE!