When planning the audit, the auditor needs to gain an understanding of the entity’s structure and its business environme

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When planning the audit, the auditor needs to gain an
understanding of the entity’s structure and its business
environment. To do this, the auditor focuses on identifying
potential risks that may have a significant effect on the financial
statements. Select the most recent set of audited annual financial
statements for a U.S. public company. After reviewing the
entity’s financial statements, discuss the entity, industry, and
economy-level factors that the auditor should consider when
planning the audit for this entity.