How do the business risks such as credit risk

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Question - There has been a sharp increase in the emergence of financial technology firms (also known as FinTech firms) over the past few years. For example, in Australia where low interest rates in 2021 contributed to a ten percent increase in the number of firms operating in the lending, mortgage and buy-now-pay-later category within the sector. Most notably, firms like Afterpay and Zip. The emergence of these firms, associated with new business models, digitalisation and cost pressure, brings on new challenges for auditors. You are part of a team at Joyful Audits, a medium sized audit firm located in Australia, who was recently approached by Zip to conduct their audit for 2022.

How do the business risks such as credit risk and liquidity risk impact your assessment of inherent risk?

Reference no: EM133180491

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