During the planning process, an auditor is required to obtain an understanding of the entity to be audited and its environment, including internal control, in order to assess the business risk faced by the entity being audited $($AU $314$ or GAGAS $4\mathrm{.}03).$ Based solely on what you$$ve learned about the VBSD budget process in Part I of the case, identify and explain three case$-$specific practices that should be considered by the auditor when assessing risk and designing audit procedures. $$