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Company C distributes ingredients for makeup. The company currently uses four (4) ERP systems; 1 for accounting, 1 for procurement, 1 for warehouses, and 1

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Company C distributes ingredients for makeup. The company currently uses four (4) ERP systems; 1 for accounting, 1 for procurement, 1 for warehouses, and 1 for human resources. These ERP systems are not compatible, often causing discrepancies between items purchased and sold. These discrepancies mean the warehouse often receives less than was procured, and the accounting department often pays for more than received. Analysts have recently announced that they believe the economy is entering a recession. Company C knows from previous experiences that less makeup is sold during a recession as it is not a necessity. Company C purchases most of their items from China and Turkey. China is currently in another COVID-19 shutdown, and Turkey is struggling with the effects of a large scale earthquake. Because of this, Company C is currently using ingredient reserves. These reserves have never undergone an inventory count and Company C is not sure of the exact quantity onsite. Scientists at Company C say these ingredients may be outdated and/or change the chemistry of the items sold. Other distributors have not experienced a disruption in ingredient procurement and are continuing business as usual. IDENTIFY THREE (3) FACTORS REGARDING COMPANY A THAT WOULD INDICATE A HIGHER RISK ASSESSMENT

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