Inherent risk is a measure of the firm’s assessment of the susceptibility of material misstatement before considering the effectiveness of internal control. Briefly comment of the following areas that are inherent in auditing a business such as company:

a. Company holds an inventory of high technology items: consumer electronic equipment.

b. Company distributes merchandise to retail stores.

c. Company sells on credit throughout two states.

d. Company rents a number of its stores.

e. Company has a large amount of debt.

f. Company is considering going public.