It Is Important for the Auditor to Obtain a Good

question 51

Multiple Choice

It is important for the auditor to obtain a good understanding of the client's industry to develop a client risk profile.If the auditor is looking at a client in the fashion clothing industry,a risk specific to the industry would be

• A)the high risk of poor governance and management oversight.
• B)the high risk of defective products.
• C)the high risk of obsolescence of their inventory.
• D)the volatility in the stock market with regards to common stock.

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Definitions:

Salary Increase

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