a.Your client is a technology company that produces electronic fitness gadgets. The company is depending on the successful launch of its newest product, an enhanced "Fitbit". The launch will take place just before the fiscal year end.

Possible business risks: Related F/S accounts and HOW they could be misstated

TYPE OF MISSTATEMENT RISK:

F/S LEVEL ASSERTION LEVEL

b.Your client manufactures office furniture. In recent years, the company has struggled to adhere to its debt:equity covenants. Now, a recession is looming and the industry is forecasting negative growth for the next few years.

Possible business risks: Related F/S accounts and HOW they could be misstated

TYPE OF MISSTATEMENT RISK:

F/S LEVEL ASSERTION LEVEL

c.Your client is a waste management company that is contracted by municipalities to provide treatment and safe disposal of hazardous wastes.

Possible business risks: Related F/S accounts and HOW they could be misstated

TYPE OF MISSTATEMENT RISK:

F/S LEVEL ASSERTION LEVEL

d.Your client is a specialty coffee retailer that is facing significant competition from chains such as Starbucks. Coffee retailers are evaluated based on sales growth and store expansion.

Possible business risks: Related F/S accounts and HOW they could be misstated

TYPE OF MISSTATEMENT RISK:

F/S LEVEL ASSERTION LEVEL

ANALYTICAL PROCEDURES

Benefits to auditors: Limitations as audit techniques:

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