Walt Disney Audit Paper

I am excited to accept your offer to join your team for the audit engagement for Walt Disney Co. that was announced last week. Per your request, I have compiled my research into five main parts in this memo: the background of Walt Disney and their business industry, inherent risk assessments, control risk assessments, detection risk assessments, and conclusion with recommendations for our audit team.

History and Background Walt Disney Co Background

The Walt Disney Company (Walt Disney) is a diversified global entertainment company with its operations in five major business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. For the purpose of this paper, I will only focus on the Media Networks business segments of Walt Disney. The Media Networks segment includes cable and broadcast television networks, television production and distribution operations, domestic television stations and radio networks and stations. Their primary cable networks consist of ESPN, the Disney Channels, and Freeform, which produce their own programs or acquire rights from third parties to air their programs on Walt

dollars using end-of-period exchange rates, except for non-monetary balance sheet accounts, which are remeasured at historical exchange rates. Revenue and expenses are remeasured at average exchange rates in effect during each period, except for those expenses related to the non-monetary balance sheet amounts, which are remeasured at historical exchange rates. For local currency functional locations, assets and liabilities are translated at end-of-period rates while revenues and expenses are translated at average rates in effect during the period. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of