For the Warehouse Group( a NZ company):

perform a preliminary assessment of three inherent and three control risks, and discuss the audit implications that flow on from your risks that you have identified. This relates to the audit risk model and keeping audit risk at an acceptable level. Examine the inherent and control risks together and decide what impact it will have on detection risk(audit effort) based on the overall audit risk that you as the auditor is willing to accept. This will then have an impact on the extent and nature of your audit procedures. For example, how much testing is required to form a valid opinion.What is the impact on sample size for audit testing