An auditor has identified that their client operates in a highly competitive industry where consumers differentiate products on the basis of technological innovation rather than price. Which of the following is most correct. Describes the impact that this will have on the auditor's assessment of inherent risk?

A. Inherent risk for the assertion of completeness for Provision for Warranty Claims will be higher.

B. Inherent risk for the assertion of classification for Research and Development expenditure will be lower.