- Business model shows customer value creation, key resources, key processes and profit formula (.. reference ..). - ISA 315 requires to understand the business environment and internal control of the entity, which leads to business risk and finally to business strategy - business risk is derived from chances of failure on achievements of business strategy - though primary concern of the auditor is audit risk and not business risk - strategy however made by an entity, often, is vague, confidential in many cases and not much of use for the auditors - strategy often get too much concerned about external environment to match Opportunities with strength, if not to build strength for those opportunities - FS shows internal information except for some revaluations, and mark to market practices, under IFRS - in such situations to document and to understand the environment (both internal and external) of an entity, business model can be the starting point - business model show...