lim and Caroline are beginning the audit of a major client, and are discussing methods by which they can gain a better understanding of the client and the industry in which the client operates. Jim advises Caroline that the easiest way to do this would be to simply look at market intelligence reports issued by analysts' firms: however Caroline disagrees, saying that other options are available to help the auditors gain an increased understanding of the client. Which of the following represent ways that this could be achieved? (Select all that apply) Examining similar sized firms in other industries to develop an expectation for key ratios such as days in receivabies and times interest earned. Examining competing companies within the same industry to develop an understanding of key financial metrics and ratios which might pertain to the client. Developing a questionnaire to be given to the client's senior management, requesting full disclosure of all high-risk areas within the firm. Developing an expectation for days sales in imventory, based on calculating this metric for the client and the industry in which the client operatesi Norma and David are both CPAs and managing parthers of Holibreck Firm, a small CPA firm performing attestation engagements for small and medium-sized clients. An audit intern has approached Norma and David and requested assistance. The intern has noticed that the client has imventory amounts on consignment, and is unsure what key issues might arise withrespect to gaining an understanding of this area. Which of the following are key areas for consideration that Nocma and Divid should advise the intern? (Select all that applyd Because the client's imentory is being held on a conslignent basis, the intern should check to emure that the conslened Inventory is listed as a liability rather than an asyt on the balance thect Q Because the imventory is being hald under consignment, neither the consignee nor consignor should list the imventory as an asset on their balance sheets. Because the inventory is consigned, a question may arise as to who halds legal title to the inventory, ateating the completeness and rights assertions. As the intern has determined the imventory Is being held on consignment. Wey details of the arrangeinent such assight of return period may need to be examined