The following Table outlines various industry factors that may be relevant to the audit.Identify the potential business risk that the auditor would be most concerned about on each of the audits.Audit Factor Audit Client Details1. Competition A clothes retailer operates in a highly price‑competitive industry.2. Demand Greater consumer awareness of the impacts of conventional farming practices has increased demand for products from a small organic dairy farm.3. Seasonality A ski resort in Queenstown, New Zealand experiences seasonal demand as tourists visit during the winter ski season.4. Commodity Airline companies are highly dependent on jet fuel commodity prices, which are subject to volatility Group of answer choicesRecorded revenues.Increased technology costs.Negative cash flows.Negative cash flows.Valuation of Inventory.Recognition of revenues.Recognition of revenues.Commodity pricing.Valuation of Inventory.Meeting increased consumer demand.Going concern red flag.Commodity pricing.Operating profit margins.Increased demand for dairy products.Going concern red flag.Negative cash flows.Operating profit margins.Increased demand for dairy products.Negative cash flows.Declining working capital.

features of cost audit

Analyzing the business environment best assists in Identifying key competitive forces; identifying competitive position; identifying key opportunities, threats, strengths and weaknesses. Auditing macro environmental influences; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats. Auditing external and organizational factors; identifying key competitive forces; identifying competitive position; identifying key opportunities and threats. Assessing historical trends; auditing environmental dangers; identifying strategic capabilities; identifying competitive position

Factors to consider include:The nature, scope, intended use and purpose of the service.The degree of reliance that will be placed on the outcome of the service in the audit.The legal and regulatory environment in which the service is provided.Whether the client is a public interest entity.Whether it is material;The degree of subjectivity involved.The client’s level of expertise concerning the type of service provided.Whether the outcome will affect the accounting records or matters reflected in the financial statements, and, if so:Whether it is material;The degree of subjectivity involved.The extent of the client’s involvement in determining significant matters of judgment.The degree of reliance that will be placed on the outcome of the service in the audit.Whether the client is a public interest entity.The fee for the NAS.

Explain the components of audit risk

Question 7You have asked the junior UX designer on the team to do a competitive audit. They are not sure what the team will learn from this audit. What should you tell them? Select all that apply.1 pointA competitive audit allows you to identify your key competitors. A competitive audit provides you with an understanding of how your competitors position themselves in the marketplace.A competitive audit provides insight into the corporate structure and their design processes.A competitive audit allows you to review the products your competitors offer.