Reference no: EM133180631

Question - Prepare a written memo and make an oral presentation describing the key audit risks posed by your selected company: Walmart.

1. Begin your report with a historical overview of the company and its industry.

2. Discuss the potentially problematic non-financial items that you identified for the assigned company such as, a management compensation scheme tied to reported earnings, an upcoming merger, restrictive bond covenants, etc.

3. Present the results of analytical procedures you applied to your company's financial data. Compute common-sized financial statements and key ratios for a 5-year period. Perform trend and comparative industry analysis.

4. Complete your presentation with a summary recommendation regarding whether the given company appears to be an acceptable audit client or alternatively, whether the company would pose an unacceptably high level of audit risk and/or business risk for an audit firm.