Consider the following independent assessments of the level of control risk for a class of transactions the following publicly traded U.S. companies.

a. The control plans for the accounts payable function of a real estate management firm are very poorly conceived.

b. The deferred tax accounting controls for a chain of hair styling salons appear to be well designed.

c. Based on your walkthrough of the raw materials inventory control procedures for a packaged food processor, you believe that the controls give you some assurance against misstatement.

d. The loan loss management control procedures for a regional bank are well documented and conceived, but the level of compliance with those plans is unclear.

e. The controls over the accounts receivable function for a retail clothing store appear to be applied effectively based on your observation of the workers in the area.

f. Your interview with the chief financial officer of a large sporting goods manufacturer revealed that the company requires board approval for borrowings or equity sales in excess of one million dollars.

For each of the preceding: 

1. Would you perform tests of controls beyond those already performed for the preliminary assessment? Justify your choice. 

2. If you choose not to perform further tests of controls, what implications does that have for your audit planning? 

3. If you perform more extensive tests of controls, discuss the implications for your audit plan if your tests support a conclusion that control is effective. 

4. Discuss the implications for audit planning if the tests support a conclusion that control is ineffective.