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2 ques together solve Situation: RAM Inc. operates in a volatile industry. In the past two years, RAM Inc. has been expanding rapidly, with company

2 ques together solve

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Situation: RAM Inc. operates in a volatile industry. In the past two years, RAM Inc. has been expanding rapidly, with company systems struggling to keep up with the 18 growth. This year, a global economic downturn has caused sales to fall by 50%. The company has recently laid off half of its accounting staff to save money. For this situation, please identify if the auditor should take a Combined Approach or 21 a substantive approach and provide an explanation as to why you choose the specific audit approach. 24 Format BI U 21 Question 41 (1 point) Situation: Easy Food Lid. is a small company that distributes fresh fruit and vegetables. There is one accounting clerk that prepares all sales invoices and processes all customer payments. The accounting clerk is also responsible for the bank reconciliation. The owner of the business is actively involved in dealing w with custom ustomers and directly supervises the six warehouse staff. However. the owner does loes not actively supervise the accounting clerk. Forthis situation. please identify if the auditor should t wrid take take a Combined Approach o a substantive approach and provide an explanation as to why you choose the specific audit approach

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