Understand Entity and Environment AU09-14b

Examples of objectives, strategies and related business risks an auditor should consider

• Industry developments – lack of personnel or expertise to deal with industry changes
• New product or services – product liability may increase
• Expansion of business – demand has not been accurately estimated
• New accounting requirements – lack of proper implementation
• Regulatory requirements – legal requirements
• Information technology – systems and process incompatible
• Financing requirements – entity not able to meet requirements