企业组织中的风险是在制定审计计划时需要考虑的核心概念或普遍概念。详细分析业务性质、交易、行业、客户、行业成长等多方面。在本节审计计划中，应明确审计风险，并计划审计时应涉及的主要风险领域。与Soundworld Ltd一样，每个组织中都存在三种更广泛的风险类型，分别是业务风险、财务报告风险和参与风险(Allen, 2014)。这些是更广泛的风险领域，其中每一个都可能涉及许多其他风险。在计划审计时，在实施审计前应考虑以下风险:
Risk in the business organisation is core concept or pervasive concept that shall be taken into account while preparing audit plan. Detailed analysis of business nature, transactions, industry, customers, industry growth and many other aspects shall be taken into account. In this section of audit plan, audit risk shall be defined and what are major risk areas that are to be covered while auditing will be planned. There are three broader types of risk present in every organisation so as in Soundworld Ltd and these are business risk, financial reporting risk and engagement risk (Allen, 2014). These are broader risk areas and in each one of them there can be many other risks involved. While planning audit, following risks are to be consider before implementing audit:
Risk Assessment: Under this section of audit plan, inherent risk under different business areas has been identified and documented while making analysis of structure and business environment of Soundworld ltd. Following is the description of inherent risk identified and their implication on financial accounts, likely hood of occurrence and materiality and identification of assertions has been taken place.
Rebates and Discounts to retailers: Discount allowed account and inventory or stock. There is high level of inherent risk in term of discount allowed account because there is significant pressure on wholesalers to allow more discount. On inventory level, there will be moderate level of inherent risk because retails can also control their inventory level which could lead to manipulation in inventory level of wholesalers or Soundworld. Assertions can be discount allowed account, misappropriation of discount vouchers and inventory system.