During the audit of Seagrave Enterprises, LLC, a retailer of fishing and other maritime sporting equipment throughout the east coast of the United States, the external auditors, Peabody CPAs, are examining the education, experience, and qualifications of employees in key positions. The auditors have determined that these employees are competent and well qualified for their respective positions. What actions might the auditor take in response to this finding?

Group of answer choices

The auditors are likely to decrease audit risk and the risk of material misstatement.

The auditor is likely to increase control risk, and focus substantive testing on areas such as cash receipts and disbursements.

The auditors are likely to decrease audit risk and increase the resultant risk of material misstatement.

The auditors are likely to access the client's control environment as high, and decrease audit risk accordingly.