$[1]$ A useful approach for understanding a client$$s business environment and associated business risks is to perform a PESTLE analysis. PESTLE is an acronym for Political, Economic, Social, Technological, Legal and Environmental factors that are used to assess the client$$s business environment. A PESTLE analysis focuses on factors that may affect an entity$$s business model, but are beyond the control or influence of the client. While beyond management$$s direct influence, such factors may significantly impact an entity$$s business risk. Read the background information about the poultry industry and conduct additional research on the internet to obtain the latest news and information on the industry. Brainstorm political, economic, social, technological, legal and environmental factors that could affect Asher Farms$$ business risk. Unless your instructor indicates otherwise, identify at least one business risk factor for each component of the PESTLE acronym.

$[2]$ For each of the business risk factors identified in question $1$ above, indicate how each risk factor might impact the risk of material misstatements in specific financial statement accounts or disclosures.

$[3]$ Professional auditing standards provide guidance on the auditor$$s consideration of an entity$$s business environment and associated business risks.

$($a$)$ What is the auditor$$s objective for understanding an entity$$s business environment?

$($b$)$ Why does an auditor not have responsibility to identify or assess all business risks?

$($c$)$ Provide some examples of business risks associated with an entity that an auditor should consider when performing an audit.

$($d$)$ Provide some additional examples of business risks that might not lead to a risk of material misstatement in the financial statements.