(Auto-Graded) Professional Application, Question 4.5 This is the second year that your firm is auditing JJ Company, which is developing a new drug for a rare form of can an audit to increase the company's operating line of credit. Jack has also informed you that he would like to convert least four years. At present, the company has two other drugs under patent, and these products produce sufficient plan ahead. Which of the following accurately describes the overall audit risk for JJ Company? High because bank will be relying on the audited financial statements. Low because investors will be relying on the audited financial statements. Not impacted. Audit risk is determined separately based solely on the amount of net income. High because of the nature of the business. High because one person, Jack, owns and controls the company. High because the only revenue source is expiring in five years and the new drug is not yet ready for the marke