Asher Farms Essay

Political In class the major political topic that we center on was possible affects on the assiduity if immigration laws became stricter. This manufacture is super dependent on cheap labor. If all of a sudden in that respect were non enough conkers in the industry there would not be enough weakly interacting massive particle available to meet the demand.Economic Evident from the case, the chicken market is heavily influenced by currency fluctuation. This is be shake up 15% of the total domestic fowl production is exported and therefore changes in the price of the dollar corporation recognise chicken much more expensive in other countries or it can have a reverse effect.Social Over the past times couple of decades there has clearly been a shift in the totality of different types of meat products that are consumed. Those who watch their what they eat are more likely to eat chicken for the high protein benefits and minimizing or so of the harmful affects of inflammation meat.Technological There had been a strong push for more economical 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 growth of the chicken industry without and slowdowns.Legal Animal rights advocates have had major relates on the ways that chickens can be processed. The conditions that the chickens live in could cause some legal problems in the future in different animal rights groups wanted to make changes.environmental Spread of indisposition always seems to be a major engage 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 spreading such as salmonella or other bacterias that are harmful.I feel that all of the backing risks identified in question 1, the PESTLE acronym, all have the same potential to impact the risk of material misstatements on the pecuniary statements. These business risks would all honk revenue, cost of goods sold, wage expenses, and certain discloses at risk for being misstated. This would beg more substantive tests to provide more reliable evidence that the pecuniary statements are correctly stated.Obtaining knowledge about the clients industry helps to highlight practices unique to that industry that may have an effect on the clients financial statements. The auditor should obtain 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 rank(a) assurance that the financial statements are correct, an auditory does not have the obligation to identify or assess all business risks because it would be not efficient, timely, or costly t o do so. As discussed in question 1, some examples of business risks that should be considered include immigration concerns, currency fluctuation, health changes, proficient 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.