which answer choice is correct?

27. John, the audit partner in charge of Hasbro CPA Firm has called a meeting of his audit teams to discuss the upcoming audit of Tyson Enterprises LLC, a large multinational retailer of clothes and other fashionable apparel throughout the United States and Latin America. John wants to brainstorm and discuss the possible risks of material misstatement that may be present with this client. Which of the following represents the most likely risk of material misstatement for this client? a. The client sells its goods in other countries, not just the United States. This exposes the client to additional risks pertaining to foreign currency exchange rates, and also the risk of non-collection of receivables from foreign customers. b. The client is a large firm, so it is possible that the client's reporting hierarchy and decentralized system of governance and operation might increase the risk of material misstatement due to local managers circumventing rules and procedures C. The client operates its production facilities in the United States, which could expose the client to overseas labor union disputes as well as having to contend with foreign strikes and collective bargaining issues. d. The client operates in the fashion industry, which changes rapidly. In addition, this industry is often fickle with consumer demands and tastes shifting rapidly