Identify inherent risks of material misstatement arising from this event in the financial statements of the company, and develop a strategy for the auditor to address those risks.

For the Written Assignment in the syllabus, I would like you to read the following articles:

Record Number of Cargo Ships Await Off the California Coast – The New York Times (nytimes.com)

Ship’s anchor seen as possible cause for massive oil spill in Southern California (nbcnews.com)
https://www.nbcnews.com/news/us-news/stretch-shoreline-affected-southern-california-oil-spill-grows-n1280715

If you cannot access these two articles, you may find other news sources covering the same topics. It is all over the news.
Then imagine this situation from the following perspectives:

1. A company awaiting the arrival of the goods or inventory (IKEA, for example, although you may choose a different company with different risks associated with the goods or inventory)
2. The auditor of the company awaiting the arrival of the goods

Then, from the auditors’ perspectives, identify inherent risks of material misstatement arising from this event in the financial statements of the company, and develop a strategy for the auditor to address those risks. Consider the Accounting, Inherent Risk, Management Assertions, and ESG/sustainability implications. You may present your thoughts in paragraphs, or in a table if that is easier.

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