IDENTIFY THE EFFECT OF THE FOLLOWING TRANSACTIONS TO THE RISK OF MATERIAL MISSTATEMENT TO FINANCIAL STATEMENTS.

a. INCREASEb. DECREASEc. NO EFFECT

1. . The accounting department has experienced a low turnover rate of key personnel.
2. The company has shown an ability to generate a positive cash flow from operations, while reporting earnings and earnings growth.
3. The employees of the company are being paid on a weekly basis.
4. . The internal audit reports to the chairman of the board who is a minority stockholder.
5. The company recently opened up its new international branch in HongKong, catering to OFWs in that location.