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Chapter 10 4

3.5 Audit risks

In addition to the risks covered in Chapter 9 which could affect any audit, specific
risks affect group financial statements such as:

 Valuation of goodwill

 Translation of foreign subsidiaries in the consolidation process

 Non-coterminous year-ends

 Inconsistent accounting policies used across the group

 Fair value adjustments

 Calculation of non-controlling interests

 Elimination of inter-company balances and trading

 Profit apportionment where there has been an acquisition or disposal

 Simple transposition or arithmetical errors in the consolidation process.

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