Risks

Risks

1. Buddy James

   • Has companies that regularly fail
     • Inherent Risk
   • Inherent Risk of family business
     • Collusion
     • Where is the most profit for buddy
   • Own Scary Spices
     • Can create contracts alone
       • No Segregation of duties
         • Less controls as easier to run?
       • Concerns about rates
         • Is always looking for investors

2. Oliver James

   • Losing Interest in Business
     • Quality of character
   • Cash Advances
     • Are these in the journals
     • Who is giving permission for this?
       • Uncle CFO?
     • Licence fee is 2nd biggest expsnes
       • Done at correct price?
   • Ignorant or involved?

3. Inventory

   • Foreign Invoices
     • Suspense Account
     • Incorrectly Recognised due to timing errors
       • #88888 from barings bank
     • Is Money going missing
   • No controls on invoice/receipt confirmation
     • Part deliveries accepted and paid
   • Stock goes out of date
     • Is this done correctly
   • Small Products easily stolen
   • Warehouse Controls
     • Warehosue Existence?
     • Access and movement controls

4. Revenue

   • Who are these unpaying customers
     • Funneling money out
   • Is all the revenue from legitimate sources
     • Is it all there??
   • How is the income recognised?
   • Past subscriptions were not recorded
     • What does the audit trail show us
     • Where is this money now
     • Why were they not recorded
   • Vouchers are incorrectly treated
     • Should be recognised when customer activates, treated as liability until tthen
     • Can be recognised if gone unused after x years
       • Check usual business practice
   • Where is the profit?

5. Provision

   • Has this been expensed