$14-25($Objectives $14-2,14-3$ In$-$class Discussion Auditing standards require the auditor to obtain an understanding of the entity and its environment to assess the risks of material misstatements. Business models differ across organizations and industries, leading to unique business processes needed to account for transactions. While the core business functions for the sales and collection cycle discussed in this chapter are generally relevant to all organizations, the underlying business processes and related documents and records are often unique to each organization. Below are four descriptions of different businesses.

The Starbucks Coffee Company sells regular and specialty coffees and teas in over $30,000$ stores spanning more than $80$ countries. Customers use cash, debit or credit cards, pre$-$paid Starbucks cards, or mobile paysment apps to purchase individual drinks that are served to them within minutes.

Amazon.com is the world's largest online retailer. While the company was originally known for its huge selection of new and used books, consumers can now find a wide variety of products available at the

Amazon.com website.

Most people have a personal physician who provides medical care when needed, including annual physicals and other medical services. Patients make appointments to be seen by their physician, who examines the patient and prescribes treatments and medications when needed. Insured patients often pay a copayment, with the balance paid by the insurance company.