For the scenarios below, which component of the audit risk is impacted (either increase, decrease or no impact), and give the reason why.

1. The sales manager of a high-end clothing store has returned from Europe, where he signed a contract to import a line of clothing that has become the latest fashion fad in Europe. The company has not previously been engaged in the clothing industry.

2. The systems administrator position was created as part of the conversion at No Frills Ltd. This new position is responsible for all systems maintenance, including data backups and modifications. Previously the accountant was responsible for this task along with his normal duties. Please label your answers 1 and 2.