B. In an audit of financial statements, the auditor must obtain a sufficient understanding of the entity and its environment, including its internal control, to assess the risk of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing, and extent of further audit procedures. (GAAS - Standards of Field Work) REQUIRED: (a) In relation to the above professional auditing requirements, identify the FOUR (4) phases for understanding and assessing control risk in an audit of financial statements. (4 Marks) (b) Why an understanding of internal control is crucial in auditing process? (2 Marks) (c) Differentiate between the test of control and the substantive test of transaction. Give one example for each of the test from revenue cycle. (4 Marks)