External risk analysis involving industry forces involves studying five risks common to all businesses. They are as

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External risk analysis involving industry forces involves studying five risks common to all businesses. They are as follows:

a. Competitive intensity

b. Potential entrants

c. Substitutes

d. Suppliers

e. Buyers 

Consider a sole proprietor pizzeria in the food court of a large mall. Identify the five external threats listed here for the pizzeria and discuss the implications of those threats to the pizzeria's auditor.

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Auditing Assurance And Risk

ISBN: 9780324313185

3rd Edition

Authors: W. Robert Knechel, Steve Salterio, Brian Ballou

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