Asher Farms Essay

Political In class the major political topic that we focused on was possible affects on the application if immigration laws became stricter. This industry is highly dependent on cheap labor. If all of a sudden there were not enough workers in the industry there would not be enough chicken available to meet the demand.Economic Evident from the case, the chicken market is heavily influenced by currency fluctuation. This is because 15% of the total poultry work is exported and therefore changes in the price of the dollar can make chicken much more expensive in other countries or it can gull a reverse effect.Social Over the past couple of decades there has clearly been a shift in the amount of different types of meat products that atomic number 18 consumed. Those who watch their what they eat are more likely to eat chicken for the high protein benefits and minimizing some of the harmful affects of red meat.Technological There had been a hale push for more efficient technology to be produced in this industry. The technology developments range from the machinery that does some of the work to new genetic engineering of the food that the chickens eat. These advancements allowed for the fruit of the chicken industry without and slowdowns.Legal Animal rights advocates have had major impacts on the ways that chickens can be processed. The conditions that the chickens live in could cause some statutory problems in the future in different animal rights groups wanted to make changes.Environmental Spread of disease always seems to be a major perplexity in the food industry. Contamination is very possible and could potentially cause huge problems. The FDA would like to minimize the possible affects of any type disease from scatter such as salmonella or other bacterias that are harmful.I feel that all of the commerce risks identified in question 1, the ruminator acronym, all have the same potential to impact the risk of material misstatements on the financial s tatements. These business risks would all put revenue, cost of goods sold, wage expenses, and received discloses at risk for being misstated. This would require more substantive tests to provide more reliable evidence that the financial statements are correctly stated.Obtaining knowledge most the clients industry helps to highlight practices unique to that industry that may have an effect on the clients financial statements. The auditor should bump knowledge relating to the clients business before commencing the audit. Understanding the clients business provides information regarding events and transactions that may affect the clients financial statements.Just like an auditor is not responsible to provide absolute assurance that the financial statements are correct, an auditory does not have the certificate of indebtedness to identify or assess all business risks because it would be not efficient, timely, or costly to do so. As discussed in question 1, some examples of business risks that should be considered include immigration concerns, currency fluctuation, health changes, technological development, and the spread of disease. An example of a business risk that might not lead to a risk of material misstatement in the financial statements that we discussed in class was opening new locations and growing the business.