The assignment is based on the risk of auditing of BSF Ltd

The assignment is based on the risk of auditing of BSF Ltd. an Australian company. The Bio-sustainable Feeds Ltd. is a company, which researches on aquaculture feeds for two decades to discover sustainable aquaculture feeds. Aquaculture is a method by which feed can be converted into protein, which is needed to survive the farmed animals. Their research is mainly focused on plant-based feed. Before this, it was fish based feed. By converting their type of feeds they are facing issues like social and environmental. They again have started research on usage of bacteria in producing fish feeds true overcome issues. Their research and development is effective for their profit and rich people are benefitted by this but poor people are not benefitted. Their products become cause of malnutrition for the poor people. Different kinds of risks are estimated and auditing is need for this company. The Audit Risk Model (ARM) is to be analysed to discuss acceptability of auditing firms to do their audit. According to Griffiths (2012), ARM is the model of detecting the audit risk for an entity and acceptability of acceptance level of audit risk by the auditing firm. The analysis of environmental and social effects of their new product is done properly. The basic question of the assessment is social and environmental effects by BSF’s production of fish based feed.