For each of the following situations, indicate whether the situation would increase (I), decrease (D) or have no effect (N) on the risk of material misstatement. 1. 2. 3. The company operates in an industry which has a highly regulated and effective oversight presence. There is a high level of turnover in the accounting/finance area. The company changed its payroll period from semi-monthly to bi- weekly. The internal audit director reports to the audit committee of the Board of Directors. A new accounting information system was implemented this year. 4. 5