7-22 (Understanding the entity and its environment) You have just been assigned as in-charge accountant on HipStar, Inc. a new audit client in the recording industry. HipStar is an emerging growth company that finds new recording artists, records their music, and distributes the music directly to consumers exclusively over the Internet. The company does not produce CDs or tapes and does not distribute the artists music through traditional distribution channels. In order to better understand HipStar, you have set out to understand the following: 1. Industry conditions 2. The regulatory environment 3. Other external factors affecting the business 4. The entitys business operations 5. The entitys investing activities and financing activities 6. The entitys financial reporting activities 7. The entitys objectives, strategies, and related business risks 8. How the entity measures and reviews its financial performance. Required For each of these eight categories (1) describe the knowledge and understanding you want to obtain about HipStar to develop a knowledgeable perspective about the entity and (2) identify how this knowledge might assist in assessing the risk of material misstatement. Use the following format