An instructional note on business risk and audit implications: Seasonality at Mattel

Rachel Schwartz, John Chandler

Research output: Contribution to journalArticlepeer-review


This instructional note provides materials that can be integrated into a current auditing course to demonstrate the use of a company's disclosures to understand the company, assess business risks, and identify audit implications. Assessing business risks in the audit process has been a key thrust of academic and professional investigation over the last 20. years, and Auditing Standard 12 raised the profile, importance and requirements for assessing business risk. Teaching the assessment of business risk in the classroom, however, is challenging. Although auditors may get access to companies' internal procedures of risk measurement and management, students would not. But there is a wealth of information that students do have access to in required SEC filings, as well as at public companies' investor relations websites. This note provides a specific example of business risk and audit implications using information about seasonality at Mattel.

Original languageEnglish (US)
Pages (from-to)397-415
Number of pages19
JournalJournal of Accounting Education
Issue number3-4
StatePublished - Sep 2012


  • AS 12
  • Business risk assessment
  • ISA 315
  • Seasonality

ASJC Scopus subject areas

  • Accounting
  • Education


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