Audit Risk Analysis: GoPro, Inc. A brief description of GoPro, Inc

    Audit Risk Analysis: Go Pro, Inc Name Institution Date   Memorandum TO: FROM: DATE: SUBJECT: Audit Risk Analysis: Go Pro, Inc

1. A brief description of GoPro, Inc 

GoPro is action video camera Company, which has become more popular with the growth in social media. The slowdown in the digital camera market and growth in smartphone usage has meant that there is less need for owning separate camera devices. A GoPro camera may be mounted on different services to capture and the recording including the self-portraits, and the company mainly has digital camera products with different specifications. GoPro also sells camera accessories, including various devices, which can capture video. The company was started in 2002 as Woodman Labs, and in 2011, the company started producing cameras and wearable accessories allowing technology applications, cloud connection, video editing and virtual reality (Reuters, 2018).
2. A clear statement that GoPro, Inc. should be accepted The primary responsibility for the prevention and detection of fraud and error rests with responsible for the control of the entity and the management. The command structure is formal, and roles of the managers well defined, while there are independent directors and members of the audit committee with experience in other companies and industries (McMahon et al., 2016).  A review of accounting statements of GoPro will be based on the information available and even the previous year financial records.  There is assurance that all the peculiarities of your business will be explained to the auditors and accepting this assignment and this will influence the auditors’ view on whether to may not accept the assignment and audit work.  For the reasons given below, I recommend that we accept GoPro, Inc. as an audit client.             The company’s internal control system implemented was previously established to be sufficient and inadequate for the application and timely detection of irregularities.  The audit will further seek to establish that there has been verification and adjustments of internal control processes. The management has affirmed the effectiveness of the entity's internal control, in all its aspects significant, in accordance with the established accounting rules, regulations, and standards. There are low levels of control risks, as procedures are carried and implemented to develop the organization's processes. GoPro has provided the relevant, accounting and information adequate to assess the level of risk. 3. Brief introductory statement describing GoPro, Inc GoPro camera maker is based in San Mateo, CA, and has used social media marketing to popularize wearable cameras and drone cameras that can also capture and send high quality images from the cameras (GoPro, 2018).  Increasingly, the company has improved high-definition video transmission features where transmitters are mounted or worn and videos sent to specific including live TV events.   When GoPro was first created in 2002, the cameras and camera accessories were most popular in extreme sports and as the gadgets were portable and wearable they were distributed to those were in sports and preferred taking video recordings. The high definition cameras were crucial to taking high quality videos and still images from the cameras at a time when surfing photography was mostly amateurish.  Subsequently, from 2004 the company perfected and improved many of the company’s cameras with different features from sound, angle degrees and high resolution (GoPro, 2018). The GoPro cameras complement streaming and smartphone cameras and can be mounted on different platforms. The competitors in the camera and camcorder market include Nikon Corporation, Canon, Inc Samsung Electronics Co, while smartphones and tablets are increasingly grown in popularity compared to the traditional camera.
4. The Independent Status of the Board of Directors

1. Nicholas Woodman : Chief Executive Officer and Chairman
2. Ty Ahmad-Taylor: Has been a director since June 2018 and is the Vice President, Product Marketing of Facebook, Inc
3. Kenneth Goldman: Has been director and chair of the Audit committee and is the President of Hillspire LLC, a wealth management service provider and Cheyenne Partners.
4. Peter Gotcher: is the chair of the Compensation and Leadership Committee and member of the Audit committee. Gotcher is an independent private investor and independent private investor in the digital media technology companies and the CEO of Topspin Media, Inc
5. Zander Lurie: Has been a director since February 2016 and is the CEO of SurveyMonkey, Inc.

Source :< > Seven out of the eight members of the board would be considered to be Independent Members by the SEC rules. The audit procedures adopted ought not to diminish the audit independence. The committee supports the functions performed by the Board of Directors, including assisting the Board to comply with the responsibilities of overseeing the financial reporting processes, the audit process, the internal control systems, compliance with laws and regulations, and code of ethics. Members of the audit committee are independent of the reporting entity while the scope of responsibilities and volume of work influence the committee composition.
5. Members of the Audit Committee are independent Kenneth Goldman is the Chair of the Audit Committee and the Chair of the Audit Committee is Peter Gotcher and Lauren Zalaznickb. All the members of the audit committee are independent and it is good practice for at least one member of the audit committee to have knowledge or experience in financial or accounting management. The role of the audit committee mainly supervises the internal reporting mechanisms and helps to improve the...