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Business Objective and Strategy	Business Risks	Audit Risks (auditor’s concern)	Related Accounts and Assertions
Potential Effect on the Audit Plan
1.Transforming Coca Cola into a global corporation that is responsible and adheres to ethical rules that forms the basis for companies around the world (Coca Cola, 2022).	Water Crisis affect	Overstatement of potential contingency	Inventory: Valuation	Inventory: Study of local trend assessment methods, determination and documentation of appropriate quantities and prices, implementation and sale of production in quantities that do not harm the population and other organizations.
	Economic Inefficiency in the Economy (currency risks)	Losses and Gains not calculated properly, or obsolescence.	Gain/losses from currency hedging: Valuation Classification Accuracy	Gain/Loss: Paying great attention to contracts in currencies, examining all gains and losses realized and not increased, and increasing the hedging contracts.
	Misunderstanding of local law and regulation in other countries	Contingency understatements	Contingent Liability: Presentation Completeness	Contingency: In-depth study of all the laws of the area or state in which the business is expanding, advocacy of the lawyer, and a survey of the population based on ethical norms.
	Consumer awareness (about health measures)	Overstatement of adverts and personal information	Sales: Cut-off Existence	Sales: Customer review of sales selection, consideration of complaints, acceptance and documentation of offers and requirements.
	Covid-19 (operational problems) no labor mobility, operations mobility.	Potential contingency understatements	Operating income: Valuation Completeness Accuracy Sales: Existence Accuracy	Operating: Recheck the workers ’insurance system, accurately calculate and document the goods going into production, and verify that costs are properly accounted for.

Water crisis affects to the Coca Cola Company

Since the main resource of beverage production is water, it is clear that water scarcity poses a major business risk for the drinks’ companies. According to Coca-Cola, 3 liters of water are needed for 1 liter of Coca Cola. As a result, the company has large water reserves. This situation has also been documented in India. Public action against the Coca-Cola Company is currently underway in the Indian states of Rajasthan and Uttar Pradesh and the company has been accused of causing major water shortages. It has also been accused of having a detrimental effect on the activities of farmers and local communities in India. These circumstances confirm that water shortages put the company at risk (War on Want, 2007).
Economic inefficiency affect to the Coca Cola Company
Coca Cola’s aspirations to dominate the global market confront it with countries with different levels of economies. If it enters a country with a weak economy, it could have a major negative impact on the development of Coca-Cola. Because currency and exchange rate fluctuations and volatility can cause great damage to Coca-Cola finances. In addition, low demand in countries with weak economies can be detrimental to a company. Therefore, the fact that this company is a monopolistic manager on a global scale is bound to lead to risks of economic weakness (Staten and Umbeck, 1989).