[Audit] Business risks and risk assessments in Apple,Inc.

[Audit] Business risks and risk assessments in Apple Inc

2007 [Audit] Business Risks and Risk assessments in Apple Inc

Introduction

The intense competition in particular market drives businesses to evaluate their policies and effectiveness regularly . Each company has its own business characteristic , which certain policy is suitable fit for a company while others could be unacceptable . Several conditions that prompt the differentiation treatment among different company are nature of the business , workers learning and development mentality , top level manager vision , dynamics market condition , and competitor business strategy , to name a

few

From investors or outsiders point of view , financial performance of a company is noteworthy since they aim at investing their money to the company by buying a number of shares from stock market . Under such circumstances , the investors would assess in much details regarding the corporate current performance and possible future states . In other terms , investors need to examine the business risks of the company in to save their investment

The assessment of business risks is also challenging since different business types imply a significant different treatment of strategic business control and evaluation . For example , a firm that produces sheets of has relatively stable , functional skills are specialized to gain operating efficiencies . There are relatively no strict challenge from the same competitor , because the market share are divided equally as long as they keep the productions quality and maintain the cheapest cost of production

In contrast , firms in electronic industry like Nokia and Apple Inc which produce mobile-phones and other portable electronic products they face a fiercer challenge since the business environment changes rapidly which in turn , forces the firm to find an effective business strategy that can improve their cost-efficiencies with the same quality product

Regardless of whether the environment is stable or dynamic , an organization needs to exercise control over its operations so that its objectives are achieved as preliminary business planning and as part of managing business risks (Shaw , 2004

Concerning the business risk , this will complete risk assessment for Apple Inc . The assessment includes several issues such as the corporate core business processes , strategic objectives , internal and external business risks , and the discussion of three financial statement accounts , specific management assertions , and environmental risks Overview of Core Business Processes and Strategic Objectives

2 .1 Business Process Measurement

Technically there are many new modern management tools that discover to help a firm evaluate their business process effectiveness . One of those tools is Balance Score-card (BSC ) analysis , which consists of financial measurement , internal business-process , customer perspective , and business learning and developing . BSC are widely use by various background firm to evaluate their business process effectiveness

Using BSC , we measure business effectiveness not only base on its financial performance , but also several non-financial aspects , that also affect the whole business process performance (Hansen , 2003

This analysis tool will give a comprehensive about the entire business process performance . How much non-financial performance measurement affects the financial performance . The chain value of this method is starting...