Auditing and Assurance Service Essay Example | Topics and Well Written Essays - 1250 words

Auditing and Assurance Service - Essay ExampleThe fact that David Jones sells its products across various countries convey that it can apply price discrimination effectively. Price discrimination is possible in the company because the markets in various locations are independent. Britton and Jorissen (2007) assert that price discrimination occurs when the same products are sold at diametrical prices in various markets. For instance, an iPhone can be costing $2000 in the USA yet the same demand iPhone costs $1800 in Australia. However, the concept of price discrimination presents a potential luck of loss of sales. This occurs in the sense that customers are knowledgeable and they might identify this difference in prices and seek alternative means such as purchasing the products online.David Jones operates in a retail industry, which has its own regulations and practices. Adhering to all the regulations can sometimes be a daunting task and as a result, the company may result to se nd packing some regulations (Higgins, 2004). This scenario presents the possibility of compliance risk in which the company can be closed tear down by relevant authorities for failure to comply with set standards.David Jones operates in a retail industry, which is real dynamic. Changes in tastes and preferences for various products for the company can plunge the company into strategic risk, which might result in loss of sales. The strategic risk in David Jones also occurs when other rival firms merge and increase their military control performance, which may edge David Jones out of the market.Financial risk is yet another potential business risk facing David Jones. The company has two main sources of finance, which is equity and debt capital. Monye (2006) claims that if the company decides to finance its operations from debts the going occupy is threatened because it might not be in a position to honor its financial obligations.