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:

Affiliated Interests

Affiliated Interests refer to businesses, organizations, or entities that are related or connected to each other, typically through ownership or partnership agreements.

Affinity Portals

Websites that offer internet users a range of content, tools, and links tailored to their interests, often related to a specific industry or niche.

Affiliated Interests

Interests that are related or connected to each other through common ownership, management, or some form of partnership or alliance.

IPv4

Internet Protocol Version 4, the fourth version of the Internet Protocol used to identify devices on a network through an addressing system.