Factors that influence decision making

QUESTION:

TABLE OF CONTENTS

Table of contents………………………………………………………………………………….2

1.0.Introduction..............................................................................................3

2.0.Understanding of the client and its environment.......................................................................3
2.1.Internal Control.........................................................................................................................3
2.2.External factors understanding.................................................................................................4
2.3.0.Objective and Strategies and Related Bussiness Risks.............................................................4
3.0.Types of Bussiness risks.............................................................................................................4
3.1.External risks.............................................................................................................................5
3.2.Internal Risks:............................................................................................................................5
3.3.Operationa risk..........................................................................................................................6
3.4.Financial risk..............................................................................................................................6
3.5.Compliance risk..........................................................................................................................6
3.6.Rationale of business risk approach:..........................................................................................6
4.0.Auditor’s concern on Business risk.............................................................................................7