Eurofins Scientific

1. Pressure to manage the firm’s risk tolerances in a manner that may increase audit risk: Eurofins Scientific’s high-performance audit strategy places an extra emphasis on the need to achieve higher levels of assurance. This puts more pressure on management to manage the firm’s risk tolerances in a way that may raise the risk of errors in the audit.

2. Potential for inventory misstatements: The precision of the audit depends on accurate inventory measurements, which can be difficult to perform. There is a risk that inaccuracies or mistakes may arise during the audit process which could result in incorrect financial statements.

3. Complexity of legal and regulatory requirements: There is a greater complexity of legal and regulatory requirements that need to be followed to ensure compliance and a successful audit. This can increase the risk of errors and omissions in the audit process.

4. Reputation risk: Eurofins Scientific’s reputation is at risk if an audit fails or causes a client to face significant consequences. In addition, a lack of customer confidence in the results of the audit can lead to reputational damage.