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Auditing High panies
OVERVIEW OF THE INDUSTRY   
RISK FACTORS, AUDIT REACTION, AND AUDITING PROCEDURES   
(a) Revenue Recognition,   
(b) Field-Service Operations,   
(c) Computer Software Sales,   
(d) Bioscience and Technology,   
(e) Foreign Operations,   
(f) Maintenance and Service Agreements,   
(g) Inventory,   
(i) Obsolescence,   
(ii) Field-Service Inventory,   
(iii) Direct Materials Valuation,   
(iv) Consigned Inventory,   
(h) Overhead Accounting,   
(i) Warranty Accruals,   
(j) Research and Development Costs,   
(i) Software Development Costs,   
(ii) Contracted Research and Development,   
(iii) Acquired Technology,   
(k) pany Transactions and Taxes,   
OVERVIEW OF THE INDUSTRY
Companies that incorporate new technologies in their products have experienced rapid growth and provided dramatic new product offerings to the world markets. Additionally, the increased use of the and s for both merce and information-sharing purposes has had a significant impact on the economy, as -based start-panies have proliferated and traditional panies have allocated significant resources to e-business strategies. As a result, high panies are ing one of the largest industries in the . and world economies. Segments of the high technology industry puters, electronics, semiconductors, e-business, software, communications, instrumentation, robotics, biotechnology, medical devices, and other applied sciences. These businesses and the products they offer are diverse, but they share the mon characteristics that result in their inclusion in the high technology category:
Intensive research and development, which generally cause operating losses prior to product introduction
 
A need to identify funding to sustain pany prior to product introduction, and thereafter for marketing and sales efforts and working capital
 
Products that derive value from technology as opposed to the production process
 
petitive advantage