Which of the following conditions related to the current year audit would most likely result in an increase of Dunder Mifflins inherent risk?

Dunder Mifflin purchased several new pieces of production equipment for its operation in the current year.

The paper sales industry has experienced an overall increase in demand.

Dunder Mifflin does not have a robust internal control system over its financial reporting.

Dunder Mifflin is a new audit client to BCD.

Dunder Mifflin sold several pieces of equipment at a loss.