For each of the situation in the table below, select the component of audit risk that is most directly illustrated. The components of audit risk may be used once, more than once, or not at all. (5 marks) Situation Component of audit risk (select IR or CR or DR and fill the box below) (a) lack of adequate planning when conducting the audit (b) Confirmation of receivables by an auditor fails to detect a material misstatement (c) Complex calculations have occurred and processed by the accounting team Page 3 of 3 T0220 Auditing & Assurance ACC707 Mid Exam (d) Absence of bank reconciliations in the accounting department (e) Stocktake procedures and policies are not followed when counting stock