FACTOR DISCUSSION LOW MODERATE HIGH According to ASA200.Aus13.4 inherent...

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FACTOR DISCUSSION LOW MODERATE HIGH According to ASA200.Aus13.4 inherent risk (IR) is a measure of the susceptibility of material misstatement before considering any internal controls . Nature of...

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FACTOR	DISCUSSION	LOW	MODERATE	HIGH
According to ASA200.Aus13.4 inherent risk (IR) is a measure of the susceptibility of material misstatement before considering any internal controls.
Nature of client’s business
Results of previous audits
Initial versus repeat audits
Quantity of non-routine transactions
Quantity of estimates and judgement required for accounts
Potential for fraudulent financial reporting & misappropriation of assets (fraud risk factors, see ASA 240)
List any other factors (can you see any illustrations in your client’s annual report of the examples in ASA 315, Appendix 2 and ASA 570.A2?)
Conclusion: Overall inherent risk level	Discuss how you arrived at your overall assessment here:

Ref: http://www.stockland.com.au/assets/investor-centre/financial-report-2012.pdf

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Answered Same Day Dec 22, 2021

Robert · Accepted Answer

FACTOR DISCUSSION LOW MODERATE HIGH 
 According to ASA200.Aus13.4 inherent risk (IR) is a measure of the 
susceptibility of material misstatement before considering any internal 
controls.
Nature of client’s 
business 
Stockland is engaged in the business of developing; owning and managing 
residential properties and communities; retirement living villages; office and 
industrial assets.   
     X  
Results of previous 
audits 
As per Independent Auditors Report the financial reports of Stockland 
Consolidated Group and Stockland Trust Group gives a true and fair view of 
the Stockland Consolidated Group’s and Stockland Trust Group’s financial 
position as at 30 June 2012 and of their performance for the year ended on 
that date; and complies with with (i)Australian Accounting Standards ;(ii) 
Corporations Regulations 2001 and (iii) International Financial Reporting 
Standards
X   
Initial versus repeat 
audits 
Stockland Consolidated Group and Stockland Trust Group have been 
audited earlier and are subjects of repeat audit 
     X  
Quantity of non-routine 
transactions 
There were no significant changes in the nature of the activities of the 
Stockland Consolidated Group and Stockland Trust Group during the 
financial year. The natures of transactions were found to be routine.

FACTOR DISCUSSION LOW MODERATE HIGH According to ASA200.Aus13.4 inherent risk (IR) is a measure of the susceptibility of material misstatement before considering any internal controls . Nature of...

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