Hello, I need help with my assignment please. Thank You!! Auditors are required

Question

Hello,

I need help with my assignment please.

Thank You!!

Auditors are required to obtain and support an understanding of the client and its environment in order to identify business risks. Much of the information needed to identify the risks can be obtained from the company's annual report, 10K, and proxy materials. Additionally, industry information on these companies can be obtained from Web sites such as Google. a) Select a public company and provide a general overview of the company and its industry. Consider the following: Ichose Lowe's Company. a. The nature of the entity b. Industry, regulatory and external factors c. Objectives and strategies d. Entity performance measures e. Management f. Governance b) Complete the following table identifying what you believe are the company's business risks. Also, consider industry averages and competitors. Business Risk Dependence on key Revenue products Audit Area AffectedAssertion Valuation Auditor Response Consider the effect of lost revenue on entity profitability

Explanation / Answer

Based on your selection i.e. Lowe's Company :-

a) Nature of the Entity- Lowe's company is one of the home improvement company.It operates home improvement & hardware stores.he Company offers a range of products for maintenance, repair, remodeling and decorating. The Company offers home improvement products in categories, including Lumber and Building Materials; Tools and Hardware; Appliances; Fashion Fixtures; Rough Plumbing and Electrical; Lawn and Garden; Seasonal and Outdoor Living; Paint; Flooring; Millwork, and Kitchens.

b) Industy, Regulatory and External Factors-PESTEL analysis is a strategic tool to analyze the macro environment of the organization. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Lowe's Companies, Inc.. Changes in the macro-environment factors can have a direct impact on not only the Lowe's Companies, Inc. but also can impact other players in the Home Improvement Stores.PESTEL analysis provides great detail about operating challenges Lowe's Companies, Inc. will face in prevalent macro environment other than competitive forces. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Lowe's Companies, Inc. if it is situated in unstable political environment.

C) Objectives & Strategies- Lowe's company objectives & strategies in the near future are:-

d) Entity performance measures-Digital Performance Management (DPM) emerges as an established product category.DPM provides the glue between business and IT priorities that technology executives in particular have been seeking for decades.

Home improvement and appliance retailer Lowe’s is focusing on delivering an excellent omnichannel customer experience. The business goals of these omnichannel efforts are to increase revenue and business agility.

The key to achieving these goals: better analytics – not just for technical visibility, but for business visibility as well. To this end, Lowe’s has implemented predictive analytics for business forecasting and hypothesis testing, as well as real user monitoring (RUM) across locations, devices, and campaigns, measuring conversions and achieving higher quality overall.

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