Question: Question 2 1 Point It is important for the auditor to obtain a good understanding of the client's industry to develop a client risk profile.

Question

2

1

Point

It is important for the auditor to obtain a good understanding of the client's industry to develop a client risk profile. If the auditor is looking at a client in the fashion clothing industry, a risk specific to the industry would be

the high risk of obsolescence of their inventory.

the high risk of defective products.

the high risk of poor governance and management oversight.

the volatility in the stock market with regards to common stock.

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