Audit-Walt Disney

Auditing Final Report

The Walt Disney Company

4/3/2013

Hina Zahoor 100255910, Leanna Berry 100257568, Sameena Juma 100257716, Lei Tang, Dayna Steele 100227856

Table of Contents

1. Knowledge of the Business: 1

Entity Level 1

Client Operations 1

Industry Level 1

Economy Level 1

PORTER’S 5 FORCES 2

Supplier power 2

Threat of substitutes 2

Threat of new entrants 2

Buyer power 2

Rivalry 2

SWOT 2

Strengths 2

Weaknesses 2

Opportunities 2

Threats 3

PESTEL 3

Political Factors 3

Economic Factors 3

Social Factors 3

Technological Factors 3

Environmental Factors 3

Legal Factors 4

2. Business Risks 4

1st Business Risk 4

2nd Business Risk 4

3rd Business Risk 4

3. Corporate Governance Practices 5

Corporate Governance 5

Controls 5

4. Audit Risk Assessment: 5

Inherent Risk 5

Control Risk 6

Detection Risk 6

Audit Risk 6

5. Materiality 6

Users of the Financial Statements 6

Determine a Base 6

Qualitative Factors 7

Performance Materiality 7

Specific Materiality 7

6. Fraud Risk Assessment 7

Red Flags 7

Incentives and Pressures 7

Opportunities 8

7. Planning Analytics 8

Analytics Procedures 8

8. Revenue/Expenditure Cycle 8

Nature of the Revenue Stream 8

Key Controls 9

Related Financial Accounts 9

Audit Risk Model: 9

9. Going Concern Assessment 9

10. Summary of lawsuits 9

11. Audit Risks/Issues/how we will address it 9

12. Audit Strategy 9

13. Appendices 10

Analytic Procedure Details 10

14. Work Cited 11

1. Knowledge of the Business:

Entity Level

The Walt Disney Company is an American headquarters that was founded on October 16, 1923. Walt Disney’s related parties include ABC, Baby Einstein, BabyZone, Club Penguin, Disney, ESPN, Hollywood Records, Kaboose, Marvel, Muppets, Pixar, Playdom, Tapulous, Lucasfilm and Touchstone.

Disney’s suppliers range from small local companies to large global suppliers. Changes in technology can have a huge impact on Disney’s profitability as they have to...