Читать книгу Wiley Practitioner's Guide to GAAS 2020 - Joanne M. Flood - Страница 230

When planning the audit, the auditor should be aware of conditions in the client’s industry. Factors to consider include the following:

1 Growth and financial results of the industry; possible sources of this information are:Industry trade association literaturePublications issued by agencies such as Moody’s, Standard & Poor’s, and Robert Morris AssociatesGovernment publications issued by the Government Printing Office, Washington, D.C.

2 Cyclical and seasonal nature of the industry

3 Product technology

4 Supply availability and cost

5 Is the industry labor intensive or capital intensive?

6 Industry labor conditions:Is the industry unionized?Has the industry recently experienced a strike?

7 Accounting principles and industry accounting practices; this information may be obtained from firm members with clients in the same industry and the American Institute of Certified Public Accountants (AICPA) Industry Audit and Accounting Guides.

8 Industry price patterns and consumer reactions to price changes

9 Regulatory environment

10 Taxation:Number of bankruptcies during the past yearNumber of new companies organized during the current year

In addition to the information the auditor obtains about the client’s industry from industry- related publications, he or she may obtain industry information from bankers, client management, auditors with clients in the same industry, and general business publications, such as the Wall Street Journal, Bloomberg Businessweek, Forbes, and Fortune.