Submitted by: Submitted by limrachael
Views: 478
Words: 5553
Pages: 23
Category: Business and Industry
Date Submitted: 01/08/2011 06:35 PM
Company Background Information
With £40,713 million gross turnover in 2009, British American Tobacco (BAT) claims to be ‘the world’s second largest quoted tobacco group by global market share (BAT p.l.c. Annual Report, p. 7). The broad geographic base are represented in 180 different emerging markets where volumes and profitability are expected to continue to grow.
BAT has built an international reputation for making and marketing high quality brands for the millions of informed adults who choose to consume tobacco. BAT does not believe in a 'one brand fits all' approach and offer consumers a wide and diversified choice of brands to suit their taste and preferences. The company have long accepted that smoking is risky and the business is not about persuading people to smoke; it is about offering quality brands to adults who have already taken the decision to smoke. (Our brands 2010)
According to the company laws, the financial statements of BAT are prepared in accordance to applicable accounting standards namely the United Kingdom Generally Accepted Accounting Principles (UK GAAP) and the International Financial Reporting Standards (IFRS) as adopted by the European Union. (Responsibility of Directors 2009)
Audit Plan Summary
The following report is written for the reference of auditors who would audit BAT. The nature of the company’s business is clearly evaluated and both business and audit risks are identified. With reference to the relevant sections of International Standards on Auditing (ISA) for UK and Ireland, the detailed audit plan documents the nature, timing and extent of audit procedures that would enable the audit to be carried out efficiently in a timely manner. Suggested materiality levels are provided for the reference of auditors. Lastly, when the audit plan is finalised, a written audit plan will be developed and communicated to the BAT management.
1.0 Business Risk
2.0
3.0 Business risk is defined as the threat...