Delgardo Fashion Company is being audited by Ice and Co$.$ external auditors. Delgardo's management has disclosed to the external auditors that the fashion industry can be fickle and has stressed how quickly consumers' tastes change. At this stage of the audit, the external auditors are attempting to gain a better understanding of the client and the industry in which the client operates. Which of the following approaches would be the most appropriate audit strategy to gain an understanding of the client and the industry?

Group of answer choices

The external auditors should plan to spend more time on inquiry and observation, with less focus on analytical procedures.

The external auditors should discuss with the client's management the opportunity to delegate analytical procedures such as the calculation of key ratios to the internal auditing function, allowing the external auditors to focus on observational techniques and tests of internal control.

The external auditor should consider adopting a strategy whereby inspection procedures become the primary focus and comprise the bulk of the audit, enabling the auditor to review key management disclosures.

The external auditor should plan to conduct inquiry and observational procedures to gain a further understanding of the client's operations and industry in tandem with analytical procedures to examine key ratios such as inventory and accounts receivable turnover.