Walt Disney Company Case Study

The Walt Disney CO.
This is a publicly traded company in the US that has been ding quite well in the recent years. The company’s 10k filing for the year 2014. From this statement, the risks facing the company will be identified classified and suggestions made on how best to mitigate them in the subsequent areas. There are various areas that the risks can arise based on the company’s 10k filling (Mertz, 1999).
Risk mitigation
The risk mitigation activities for this company should involve learning on the trends of the industry so as to make sure that they remain competitive. This will make their finances to perform consistently well and investors will be impressed and invest even more. As well, the company should do research on shows hat that

This channel has been doing well financially and this may make the reporting of statements of finance at Disney to be overstated so as to attract more investors than the competitor (Mertz, 1999).
The second area that risk may arise is the programming risk whereby the company may bring in a show during prime time only for it to flop and make customers to switch to other channels. This switch may be very fast since there are switching costs involved. Such a risk definitely makes the company to lose a lot of money during that time the show was supposed to be aired and this affect the 10Q and the 10K filling (Mertz, 1999).
The third risk is the Federal Communication Commission regulation. Any violation with their rules would lead to big consequential losses after being closed down. Therefore, this makes up the largest risk of the three. The company should do all they can to avoid this (Allen, 2000).
Test or

In this approach, the focus will be on the internal control objectives so that the control design can be well assessed. First, the auditor will define the control measures and objectives and then find out which measures already installed meet the objectives (Tyrer, 1994).
Type of documentation focused on
The documentation that will be focused on will be the adherence to FCC rules and the financial reporting documents. The former will help in identifying whether or not there is an understatement or over statement. The latter will help in identifying whether or not the company has any loopholes that hinder the company from adhering to the rules of FCC (Tyrer, 1994).
Levels of assurance
The level of assurance that the audit report will offer should be foolproof in that it will cover all the risky areas. The report will make sure that the company is covered from an audit professional perspective. All the risk that may face the company in this regard will be covered completely (Turley, 1997).
Internal