Control risk can be affected by a variety of factors and higher control risk can impact both managements presentation of the financial statements as well as the auditors ability to rely upon certain types of audit procedures.

Required: For each item indicate it will increase or decrease control risk. (4 points)

Group of answer choices

1. Proper segregation of duties.

[ Choose ] Decrease Increase

2. Audit client has hired new personnel.

[ Choose ] Decrease Increase

3. Audit client has experienced rapid growth in a short period of time.

[ Choose ] Decrease Increase

4. Physical security procedures are in place regarding the safeguarding of assets.

[ Choose ] Decrease Increase