I-2 (OBJECTIVE 1-2) In the conduct of audits of financial statements, it would be a serious breach of responsibility if the auditor did not thoroughly understand accounting. However, many competent accountants do not have an understanding of the auditing process. What causes this difference? 1-3 (OBJECTIVE 1-3) Discuss changes in accounting and business operations over the last decade that have increased the need for independent audits. 1-4 (OBJECTIVE 1-3) Distinguish among the following three factors impacting cash at the bank: risk-free interest rate, business risk, and information risk. Which of them does an auditor reduce by performing an audit? I-5 (OBJECTIVE 1-4) Identify the three main ways information risk can be reduced. What are the advantages and disadvantages of each