Bega Cheese operates in the dairy industry where they supply cheddar cheese as well as processed cheddar cheese into the retail and food service markets in and across Australia (William Jr, Glover and Prawitt 2016). The company is a public listed and owned by shareholders where the business manufactures natural cheddar cheese that can be either cut or pack the cheese into the retail packs made available in the supermarket. Bega Cheese has forever supposed the best approach for building value as well as managing risk for combining with the enduring knowledge as well as business information with innovative approaches and thoughts (Elder, Beasley and Arens 2012). The company delivers number of positive outcomes for its stakeholders for the financial year 2017 where they face many challenges and intense competition. The company works together for generating top line revenue growth, improved financial performance as well as maintaining strong balance sheet at the time of investing in the near future. The company built on partnerships with the valued customers as well as maintaining trust from valued milk suppliers (Ricchiute 2014).
Inherent Risk is one of the risk that is pretense by an error or omission in a fiscal statement because to a feature other than a malfunction of control. It is the risk that mostly occur other than a failure of control where the transactions are intricate or situations that need a high degree of decision in regards to fiscal approximation (Elder, Beasley and Arens 2012). Some of the inherent risks faced by Bega Cheese at the time of audit are as follows:
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Arens, A.A., Elder, R.J. and Beasley, M.S., 2016. Auditing and assurance services: An integrated approach. Prentice Hall.
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Bierstaker, J.L., 2012. Auditing and Assurance Services. Issues in Accounting Education, 17(3), pp.341-344.
Campbell, D.R., 2015. Auditing and Assurance Services. Issues in Accounting Education, 16(1), pp.157-157.
Eilifsen, A., Messier, W.F., Glover, S.M. and Prawitt, D.F., 2013. Auditing and assurance services. McGraw-Hill.
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Garner, D.E., 2015. Auditing & Assurance Services. Issues in Accounting Education, 13(3), p.768.
Gay, G.E. and Simnett, R., 2015. Auditing and assurance services in Australia. Sydney: Mcgraw-hill.
Louwers, T.J., Ramsay, R.J., Sinason, D.H., Strawser, J.R. and Thibodeau, J.C., 2013. Auditing and assurance services. New York, NY: McGraw-Hill/Irwin.
Ricchiute, D.N., 2014. Auditing and assurance services. South Western Educational Publishing.
William Jr, M., Glover, S. and Prawitt, D., 2016. Auditing and assurance services: A systematic approach. McGraw-Hill Education.
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