Question 1 You are a graduate working for W&S Partners, a Canadian accounting firm with offices located in each of Canada's major cities. W&S has just been awarded the December 31, 2023, audit for Cloud 9 Ltd. (Cloud 9). As part of the planning process for the new audit, the audit team needs to gain an understanding of Cloud 9's structure and its business environment. By understanding the client's business, the audit team can identify potential risks that may have a significant effect on the financial statements. This will assist the team in planning and performing the audit. Your task is to research the retail and wholesale footwear industries and report back to the audit team. Your report will form part of the overall understanding of Cloud 9's structure and its environment. You are required to answer the following questions based on your research about the footwear industry and the additional information about Cloud 9 presented in Appendix A: 1. General and industry-specific economic trends and conditions- What is the current condition of the economy in Canada and what is the likely effect on Cloud 9's business? 2. Competitive environment- What is the effect on the client of potential new entrants into the market? Are there any significant barriers to entering the market? 3. Technological advances and the effect of the Internet- How does the industry use technology? 4. Laws and regulatory requirements- Are the client's operations affected significantly by local or foreign legislation?