The fifth annual audit of Deluxe, a nonpublic company that manufactures skin care products, is commencing. Deluxe's primary product

and the focus of most of its marketing efforts is a facial cleansing brush, ProSonic, that has been a long$-$time leader in the market.

Demand, while remaining strong, has slowed its growth due to the increasing presence of competitors in the market.

Which of the following aspects of the company's business environment is most likely to increase Deluxe's inherent risk?

Increasing government regulation over pesmsonal care products

Inadequate internal controls over shipping returns

Loss of product differentiation advantages

Increasing pressure to incorporate sustainability into the manufacturing process