MAA303 Audit and Assurance - Chapter 3: Risk assessment I

3.24  Understanding the client

Stokes Ltd operates in the steel fabrication industry. Its business is organized into domestic and international sales, and has many clients in each area. It obtains most of its raw materials from two suppliers, both located in the same state as Stokes’ main operations. The government is currently considering relaxing the tariffs on steel, so that more overseas suppliers can enter the domestic market in competition with Stokes.

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What issues would the auditor be interested in researching further for Stokes Ltd?