Big Machine Executive Summary

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This report provides an overview of potential audit risks by analysing the ratios and the additional information of the Big Machine Ltd (BML) associated the with some of the key accounts and provides steps to reduce audit risk and the business risks. To analyse the ratios, current year ratios (unaudited) are compared with previous year audited ratios and industry average. Further, the report evaluates effectiveness of the internal control environment and application to the audit risk model while bringing out the weakness in the internal controls. To help with evaluation, information from the latest internal control manual has been used and Big Machine Ltd has upgraded to a new system for contract payments.
Some of the ratios were analysed

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