Vanijya Classes
Back to Case Studies

The Audit Engagement Risk

New Client: 'FashionFast'
The interior of a busy, modern clothing store

You are part of the audit team for a new client, 'FashionFast', a mid-sized retail company selling trendy apparel. The company is known for its aggressive growth, rapid inventory turnover, and a generous sales return policy ('full refund within 30 days'). The economy is currently in a downturn.

Given the client's business model and the economic climate, what is a primary risk of material misstatement in the Revenue account?