AUDIT PLANNING REPORT Harvard Case Solution & Analysis



            This report has been prepared to execute the audit planning for the Canadian based Company, Alimentation Couche-Tard Inc for the year ended April 24, 2016. The company is listed on the Toronto Stock Exchange. The engagement has been accepted and the pre planning phase of the audit has been completed. The client has been accepted and the initial audit planning has been performed. The terms of the engagement have also been accepted and the overall audit strategy has been setup which also includes the engagement of the required audit specialists and staffing. Now the time has come to plan the entire audit. Planning the audit is highly important and it is necessary to obtain the sufficient appropriate evidence in order to avoid all sorts of the misunderstandings with the client and also help the audit team to keep the costs of the audit reasonable.

Risk Profile of ALIMENTATION Inc.

            The risk profile for ALIMENTATION Inc. has been performed in a number of steps as follows:

Understanding Client’s Business & Industry

            Understanding the industry in which the client is operating and the knowledge about the business and its operations would help the management to conduct an adequate audit. First of all, we need to understand about the nature of the transactions which are conducted by the company and its major customers. The company is the largest of all the convenience stores in Canada in terms of the number of the company operated stores.

            The North-American network of the company consists of 15 business units. A broad retail network is also being operated by the company in Denmark, Sweden and Norway. The main products of the company offered to its customers are the road transportation fuels. Apart from these main products, there are also many other products which are offered by the corporation. These include the marine fuels, stationary energy and many other chemicals.

            The management of the company has gone under rapid consolidation with many other stores in many markets.

            The operations of the company involve the purchase, sale and refinement of oil and other related products, therefore, the organization is also subject to numerous regulations and environmental laws. Most of these laws specifically relate to the quality of the fuel products of the company carbon emissions, use of the renewable energy products, ground pollution, the remediation of the contaminated sites and disposal of the waste.

            Moreover, if we analyze the nature of the transactions which are taking place within the company, then it could be seen that there are no significant related party transactions conducted by the management. The related party transactions have not been disclosed in the financial statements which show that if any related party transactions have been conducted by the company, then they would not be material to have a significant impact on the financial statements of the company(Arens, 2015).

            Along with this, if we analyze the management of the internal controls and the governance of the organization then the management has set controls for ensuring that all the financial information which is produced is reliable(Arens, 2015). The management has also maintained a system of disclosure controls and procedures. This is going to ensure that the information which has been disclosed within the MD&A would be timely, complete and reliable. This clarifies the organizational objective of the reliability of the financial reporting............

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