Audit
Planning Memo
Prepared by: Group Red
Robert Mumford
Zhenwei (Wayne) He
Danning (Emily) Luo
Daljinder Kaur
Simran

Contents
Gaining an Understanding of the Client – Prepared by Robert ................................................................. 1
Entity Level ......................................................................................................................................... 1
Industry Level ..................................................................................................................................... 2
Economic Level................................................................................................................................... 2
Business Risks of the Entity – Prepared by Daljinder ............................................................................... 3
Three Significant Audit Risks – Prepared by Wayne & Emily .................................................................. 4
Fraud Risk Assessment – Prepared by Simran.......................................................................................... 5
Risk of Material Misstatement – Prepared by Simran ............................................................................... 6
Materiality – Prepared by Daljinder ......................................................................................................... 7
Planning Analytics Conclusion – Prepared by Wayne .............................................................................. 7
Corporate Governance – Prepared by Wayne ........................................................................................... 8
Five Areas of Inherent Risk – Prepared by Robert.................................................................................... 9
Going concern risk – Prepared by Emily ................................................................................................ 11
Assertions Most at Risk for Contingent Liabilities – Prepared by Daljinder ............................................ 12
Appendix ............................................................................................................................................... 13
Risk Factors Table – Prepared by Simran ............................................................................................ 13
Planning Analytics for the Income Statement – Prepared by Robert ................................................... 14
Planning Analytics for the Balance Sheet – Prepared by Robert ......................................................... 15
Planning Analytics Ratios - Prepared by Robert .................................................................................. 16
Materiality Calculations – Prepared by Daljinder................................................................................ 16
Going Concern Calculations – Prepared by Emily ............................................................................... 16
Works Cited........................................................................................................................................... 17

Gaining an Understanding of the Client – Prepared by Robert
Entity Level
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Approaching bankruptcy in 2006 the company terminated its manufacturing operations and switched to licensing royalties starting from its own initial portfolio (Sturgeon, 2010).

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On October 24, 2013 the company saw a 23% drop in share price following failure to win a patent infringement case against Apple in Texas. (Vancouver Sun, 2013).

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The V-Chip licenses outlook is negative due to digital television manufacturers opting to either to forego the product or using a competitor’s product (Wi-LAN, 2012).

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Research & Development as of 2012 is primarily focused towards finding innovations in wireless broadband patents to help expand the potential of Wi-LAN’s portfolio (Wi-LAN, 2012).

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Over 76% of expenses incurred in 2012 alone was Cost of Revenue which is comprised of the