Strategic%20Analysis%20of%20Business%20Processes%20%28October%2012%202011%29

Strategic%20Analysis%20of%20Business%20Processes%20%28October%2012%202011%29

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Strategic Analysis of Business Processes Tim Bauer ACCY 405 October 12, 2011
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Announcements Upcoming SSA Cases: Loblaw Companies Ltd. October 19  (GT6) Triangle Manufactured Homes October 24  (GT7) (GT8)
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Outside Class Assignment Developing expectations for Apple’s Q4 2011 revenue Your task is to develop well-informed expectations for Apple’s Q4  2011 revenues.  Prepare a subjective probability distribution for Apple’s Q4  revenues   at least a point estimate and a range. Submit your typed, one-page justification for your expectation in  class on Monday, October 17. 
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Today’s Objectives Small strategic shifts made by our clients can have big audit risk  implications. Can we make the links?  Strategic risks   Business processes   Audit risk implications Group Activity:  Global Water Corp. Time Permitting    Discussion:  Microsoft’s Xbox 360 Overall Purpose of Module II   Rich client knowledge   Well informed expectations   Better risk  assessments   Better audits.
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What Do We Know So Far? High Quality Audits = High Quality Risk Assessment Recursive, evidence-driven, belief-based risk assessment The objective of the auditor is to conduct the audit of financial statements in a  manner that reduces AR to an acceptably low level. AR = RMM x DR   PDR = AAR/RMM (PCAOB AS. 8) SSA provides us guidance on how to obtain a rich understanding of our client’s  strategy, business process and risks for the purpose of audit planning.  Triangulation: EBS   MII   MBR Evidence from the three fundamental sources used to inform our risk  assessments. 
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The Strategic Systems Auditing (SSA) Process Strategic analysis (SA) Process analysis (PA) Risk assessment (RA) What business risks exist, are they under control?   Implications for audit risk? Are company’s key non-financial performance measures  consistent with financial indicators?
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What is Strategic Analysis (SA)? Strategic analysis involves understanding how the client: (1) Adds value to its economic environment         “How does my client make money?” (2) Utilizes business processes to achieve its business  objectives. (3) Identifies and reacts to external threats to the 
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Strategic%20Analysis%20of%20Business%20Processes%20%28October%2012%202011%29

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