3. The computer manufacturing industry __________.

1. is subject to high inherent risk, and should be avoided by the auditor
2. is not subject to technological obsolescence
3. is subject to technological obsolescence
4. is very profitable for the auditor due to high inherent risk and the greater extent of needed audit procedures

4. Many elements of valuing inventory __________.

1. should be ignored by the auditor due to complicated valuation issues
2. involve professional judgment and strict accounting rules
3. should be handled by the internal auditors
4. involve professional judgment and accounting estimates