Your client,Macilbink Ltd. ,manufactures calendars,books,and magazines.The printing presses that they use are only three years old,yet new technology has been developed that would result in cuts in ink and electricity costs by over 20%,while simplifying the setup process,making smaller production runs more feasible.Macilbink Ltd.is facing lowered demand for its products and will need to change direction or innovate to stay in business.The effect of the new printing technology has resulted in which of the following risk assessment changes by Macilbink Ltd.'s auditors?
A)decreased control risk
B)increased control risk
C)decreased client business risk
D)increased client business risk

Question

Quizplus · Accepted Answer

The new technology poses a risk to Macilbink Ltd. because it may require significant investment to remain competitive, especially given their current lowered demand and need to innovate.

Your Client,Macilbink Ltd