Preparing memo on state of the company industry
Assume that you are audit senior in an accounting firm. Your firm has recently won an audit for a company. However, your firm does not have any other clients that operate in this industry. Your audit partner is concerned about his lack of knowledge of the industry the company is operating in. He is aware of the requirements of ASA 315 (par 25 and 26).
Your audit partner asks you to prepare a memo on the ‘state of the company's industry' and associated risk factors.