Chic Fashions Ltd is a national retail chain with stores located throughout Australia. Chic Fashions specialises in expensive women's summer clothing. The garments are designed in Australia and manufactured in China from European-sourced fabrics. The availability of competitor products on low-price internet shopping sites, combined with the relatively high Australian dollar, has resulted in several fashion houses closing down. This industry-wide decline in sales has resulted in continuing cash flow problems for Chic Fashions. Required: Identify and explain four industry-specific factors that are important when gaining an understanding of the entity and its environment to assess the nature of the risks for the audit of Chic Fashions. Adapted from Gay GE., and Simnett, R. (2018) I

Chic Fashions Ltd is a national retail chain with stores located throughout Australia. Chic Fashions specialises in expensive women's summer clothing. The garments are designed in Australia and manufactured in China from European-sourced fabrics. The availability of competitor products on low-price internet shopping sites, combined with the relatively high Australian dollar, has resulted in several fashion houses closing down. This industry-wide decline in sales has resulted in continuing cash flow problems for Chic Fashions. Required: Identify and explain four industry-specific factors that are important when gaining an understanding of the entity and its environment to assess the nature of the risks for the audit of Chic Fashions. Adapted from Gay GE., and Simnett, R. (2018)