Business Risk Essay

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MZUMBE UNIVERSITY DAR ES SALAAM BUSINESS SCHOOL TERM PAPER ON SUBJECT NAME: AUDITING AND ASSURANCE SERVICES SUBJECT CODE: ACC 5221 TOPIC: BUSINESS RISK AND AUDITORS CONCERNS PREPARED BY NAME: AME PANDU KHAMIS REG NO: Msc/A&F/DCC/102/T.11 PROGRAMME: Msc in A&F DATED: 20TH DECEMBER, 2011 CONTENTS 1.0.Introduction 2 2.0Types of risk 2 2.1Buiness risk 2 2.1.1Introduction to Business rik 2 2.1.2Internal and External Business risk 2 2.1.3 Oher types of Business Risk 5 2.1.4 Developing an Understanding of Business Risk………………………………….....5 2.1.5 Implication of Business Risk for the Audit………………………………………….6 2.2 Audit risk …..6 2.3 Business Risk VS. Audit risk 7 3.0 Roles of Internal Auditor in Risk Management…………………………………………...7 4.0 Business Risk Audit Approach 8 4.1 Why use a business risk audit approach 8 4.2 Understanding the business risk approach........................................................................8 4.3 Areas to be covered under risk based audit 8 4.4 How do you assess risk.....................................................................................................8 4.5 Impact of high risk of fraud on the audit strategy……………………………………….9 5.0 Conclusion……………………………………………………………………..………….9 1.0 INTRODUCTION Risk is the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility. Risk includes the possibility of losing some or all of the original investment. Strategies to help manage risks associated with their business and investment dealings. Many companies now allocate large amounts of money and time in developing management key component of the risk management process is risk assessment, which involves the determination Risk is ubiquitous in all areas of life and risk management is something that
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