The Key Inherent Risk Factors an Auditor Must Consider When

question 78

Essay

The key inherent risk factors an auditor must consider when auditing the purchasing process are industry factors. Which two are most important and why?

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Definitions:

Trade Agreements

Formal arrangements between countries to regulate tariffs, quotas, and other trade restrictions to facilitate and encourage international trade.

Trade Barriers

Government-imposed regulations such as tariffs, quotas, and embargoes that restrict the free flow of goods and services between countries.

Efficiency Loss

Losses in economic efficiency that occur when equilibrium for a good or a service is not achieved or is not achievable.