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Walt Disney Company Case Study

explanatory Essay
794 words
794 words
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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 …show more content…

In this essay, the author

  • Explains that a publicly traded company in the us has been ding quite well in recent years. from this statement, the risks facing the company will be identified and suggestions made on how best to mitigate them.
  • Opines that the company should learn on the trends of the industry so as to remain competitive. they should also do research on shows that people want to watch at any one time.
  • Explains the top-down approach to auditing a company's financial statements. the auditor identifies the controls that meet their objective and those that do not.
  • Explains the sampling technique that best suits the company would be the coso approach which is aligned with the top-down approach. the auditor will define the control measures and objectives and then find out which measures already installed meet the objectives.
  • Explains that the company's documentation will focus on adherence to fcc rules and financial reporting documents, identifying whether or not there is an understatement or over statement.
  • Opines that the level of assurance that an audit report will offer should be foolproof in that it will cover all the risk.
  • Explains the internal controls of the company that will be covered involve the various coso approaches that were already in place. the auditor will help in making sure that these controls are well implemented and that they cover all the areas that relevant and risky.
  • Explains that walt disney knows about patient satisfaction. family practice management, 6(10), 33-35.
  • Explains allen, p. j., walt disney world's utility reporting system, strategic planning for energy & the environment, 19(4), 37.
  • Describes the three major risks disney faces, including stiff competition from other channels, and the federal communication commission regulation.

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 …show more content…

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

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