My firms risks from accepting my audit clientengagement1.How widely distributed are the audited financial statement?Master Card is a global commerce and a publicly listed company, so its audited financial statements are widely distributed in the world. As a result the reputation risk is higher.

2.How strong is the financial condition of the auditee?The financial condition of Master Card is strong; as a result, financial failure which can lead to investor losses and lawsuits against the auditors work is not significant. In addition, audit fees which can cover the costs of doing the audit seem easy to collect, so the legal liability risk is lower.

3.How trustworthy is auditee management?Master Card is a global financial organization with a long history, and it has millions of businesses. Today, MasterCard serves people around the world, and it processes more than 16 billion payments each year.So my firm has several reasons to believe the management is trustworthy and it is lower misstated financial reporting risk.

4.How complex is the financial reporting required?MasterCard is widely distributed all around the world, and it has business from many countries by different currency, so its accounting requirement is complicated, therefore the misstated financial reporting risk will be higher.

5.How knowledgeable are the people likely to be using the financial statements?MasterCard is a financial organization, and its business is relate to finance and economic. The financial statements are open to the public, and it also issues stocks to the public. As a result,the users are relatively sophisticated and they can direct access to the information of the audited financial statements to make decisions, so the legal liability risk is lower.