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II. A company's accounts consist of I. accounts which involve complex and unusual transactions; and, II. Accounts which involve simple transactions. The audit partner will consider which accounts have a higher level of Inherent Risk? Audit III. Classify each of the following items as related to: a. audit risk; b. control risk; c. inherent risk; or d. detection risk. 1. 2. The "audit" is completed in record time as no evidence is gathered on many accounts which are material to the financial statements. The CPA firm assigns more experienced staff to the audit of a large company, since this is a very important audit client. A trusted employee has access to the company's assets and the company's accounting records. The auditor merely asks the controller if the financial statements are correct. No other work is done. The account balance is based on assets which are easy to steal. 4. 1. 2. 3. 4. Section III is on the next page