List two inherent risk factors that directly affect the purchasing process. Why should an auditor be concerned about these issues

Two inherent risk factors that directly affect the purchasing process are 

•  industry-related factors,
• misstatements detected in prior audits.
  If the entity deals with a large number of vendors and prices tend to be relatively stable, there is less risk that the entity's operations will be affected by raw-material shortages or that production costs will be difficult to control. However, if an entity is dependent on a single vendor to supply a critical component and the vendor is unable to provide the component, the entity may suffer production shortages and shipping delays that significantly affect financial performance.