Understanding the client and its risks-risk assessment Ivy Brown n importer of scooters AP4.2 (Lo 1) Moderate been investigating certain aspects of Scooter's business given 's business, which preparing a report for the engagement partner of an existing client, Scooter in and other low-powered motorcycles. Ivy has the change in economic conditions over the past 12 months. She has found that Scooter experienced rapid growth over its first five years in operation, has slowed sig ear. Initially, sales of scooters were boosted by good economic conditions and solid employment g coupled with rising gas prices. Consumers needed transportation to get to work and the made the relatively cheap running costs of scoote nificantly during the last rowth, high gas prices rs seem very attractive. In addition, the low purchase price of a small motorcycle or scooter, at between $3,000 and $8,000, meant that almost anyone who had ob could obtain a loan to buy one. However, Ivy has found that the sales of small motorcycles and scooters have slowed significantly and all importers of these products, not just Scooter, are being adversely affected. The onset of an eco- nomic recession has restricted employment growth and those people who still have jobs are less certain of continued employment. In addition, the slowdown in the world economy has made gas prices fall, further reducing demand for this type of economical transportation. Ivy has also discovered that, due to the global financial crisis, the finance company used by Scooter's customers to finance the purchase of scooters and motor cycles has announced that it will not be continuing to provide loans for an vehicle with a purchase price of less than $10,000. y type of Required a. Identify the issues that potentially impact the audit of Scooter Inc. b. Evaluate how each issue affects the risk assessment by (1) identifying the risks and (2) identifying the financial statement accounts that require closer examination