Assessing Audit and Business Risk at Toy Central Corporation
This case requires you to evaluate business risks and accounting issues facing a toy manufacturer, and determine how these matters will translate into assertion-specific audit risks. When performing your analyses, you will need to draw on your general knowledge of toys and possibly research some of the issues facing the toy industry. Through these analyses, you should begin to see a need for auditors to consider broad management issues relating to supply chain management and marketing, as well as more traditional matters pertaining to accounting and auditing.
Christine Earley and Fred Phillips. "Assessing Audit and Business Risk at Toy Central Corporation" Issues in Accounting Education 23.2 (2008): 299.