1. Briefly describe the control risk assessment process for the auditor. What are the auditors options after they have assessed control risk? (In other words, what impact does the control risk assessment have on the rest of the audit).
2. What are some red flags for potential fraud that a client might exhibit? What are some red flags that might indicate non-compliance with the law?
3. What is the difference between direct effect noncompliance with the law and indirect effect noncompliance with the law? Describe the auditors responsibilities for each.