3C. For each of the two situations described below complete the following: ( 8 marks) i. Identify the impact on the component (s) of audit risk affected and explain why it is an audit risk ii. Identify the key account balance (s) affected. iii. Identify the prime audit assertion of interest to the auditor iv. Identify the substantive test of detail audit procedure you would use to test the assertion identified Bill Simith was the CEO and director of Peak Ltd, until he died unexpectedly. After his death, his son, Will Simith, became the new CEO and embarked on a cost-cutting exercise, which included a reduction in key staff in the credit department. (1+1+1+1 = 4 Marks) - One of the stores new clothing franchises has performed extraordinarily well, increasing its profit by 40% since the appointment of a new manager director. It seems that the paformance compensation system of bonuses based on sales is working at boosting employee morale. (1+1+1+1 = 4 Marks)