CONSOLIDATION RISKS

RISKS CONSEQUENCES ACTIONS

Material Misstatement Fraud or error Performing risk
assessment at
the company
level
Review overall
audit strategy
Discussing with
the auditor
susceptibility of
the companys
financial
statements to
material error or
deliberate
misstatement
Improper Adjustments Over/Understated Review the
Financial calculation of
Statement goodwill
Review the
cancellation of
inter-company
balances and
transaction
Provision for
unrealized profits
as a result of
inter-company
transactions