申論題

七、Your audit firm was recently engaged to conduct the financial statement audit for ABC
Automotive, an original equipment manufacturer (OEM) in the automotive industry. As the senior manager on the engagement, you are performing initial audit planning and developing an understanding of ABC’s business and industry. While the lead engagement partner has experience in the automotive industry, you have only worked on one other automotive engagement. As part of the planning process, you are reviewing news article and thought papers on the impact of autonomous vehicles on the industry, including OEMs. You come across a 2020 publication titled “Island of Autonomy: How Autonomous Vehicles Will Emerge in Cities Around the World,” in which the authors predict that sales of personally owned sedan vehicles in the U.S. will drop from approximately 5.4 million in 2020 to 2.1 million by the year 2030 due to shifts in mobility patterns, particularly in major cities.
You are also aware that ABC Automotive recently had a significant recall on one of their parts that is a
component of a popular sedan sold by one of the large automotive manufacturers. You read that a lawsuit has been filed related to an accident caused by the defective part. Required:

3. What are additional sources of information that you could use to identify additional potential business risks?