Reference no: EM133922794

Problem

Stellar Corporation is a publicly traded technology company that develops and manufactures advanced communication systems and satellite technologies. The company has experienced rapid growth over the past few years, driven by increased demand for satellite-based internet services. However, the industry is highly competitive and subject to rapid technological changes and stringent regulations. The technology and satellite communication industry is characterized by rapid innovation, regulatory scrutiny, and significant competition. Compliance with international regulations is critical for Stellar Corporation, and failure to comply could lead to penalties and reputational damage. Stellar Corporation has invested heavily in research and development (R&D) to stay ahead of competitors. While these investments are crucial for future growth, they also pose a risk if new products do not meet market expectations or regulatory requirements. The company has significant long-term debt used to finance its expansion. The ability to service this debt depends on continued revenue growth and profitability. In the past year, Stellar Corporation faced a revenue decline in one of its key markets due to regulatory changes. Get the instant assignment help.

Task

Discuss three key risks associated with the audit of Stellar Corporation, considering industry, business, and financial risks. Explain how these risks could impact the audit process and the financial statements