Imagine that you are a senior auditor, and your firm has been selected to audit a medium-sized sporting goods company with a single location.

• Describe the four phases of an audit and discuss the key factors that would help you determine how to plan the audit for this company. Provide specific examples.
• Determine both the relationship of risks in the planning of the audit and factors that influence those risks.
• Speculate on which type of risk creates the most uncertainty for the auditor, and recommend at least two ways to plan the audit to mitigate those risks. Provide specific examples.