6.4 Based on the Evidence, Assess Risk; Types of Risk 6.16 Risk Analysis. Four tasks are required to assess the risk of misstatement. They are: 1 Identify risk by developing an understanding of the entity and its environment. 2 Relate the risk to what could go wrong in management's assertion. 3 Determine whether risks could result in material misstatement of the financial statements. 4 Consider that risks will result in material misstatement. Required: Using these tasks, analyze the following risks: A. Cash receipts from sales in an office supply store are not recorded. B. Investment in securities by the treasury department of a small manufacturing firm result in large losses. C. Financial statement disclosures do not comply with IASs. D. Pollution equipment in a large international steel refinery does not comply with local pollution control laws. E. Bank statements do not correlate with cash receipts and disbursements