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Henry Bailey, CPA, is planning the audit of The Neighborhood Store, a local grocery cooperative. Because The Neighborhood Store is a small business operated entirely
Henry Bailey, CPA, is planning the audit of The Neighborhood Store, a local grocery cooperative. Because The Neighborhood Store is a small business operated entirely by part-time volunteer personnel, internal control is weak. Bailey has decided that he will assess control risk at the highest level for all assertions and not restrict audit procedures in any area. In these circumstances, must Bailey obtain an understanding of internal control design and implementation? Explain.
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