Mark Jackson is the manager on the audit team for a new client, Central Companies (CC). CC is a home appliance and lighting retailer specializing in high-end kitchen equipment and specialty light fixtures. The client engaged Mark's accounting firm in August 2025 in preparation for the December 31, 2025, audit. From January 2025 onward, CC has consistently paid its inventory suppliers late, well past the suppliers' agreed-upon credit terms. Some suppliers are even demanding cash on delivery from CC and no longer extending credit. Mark is also aware from his review of correspondence between CC and its bank that the company has been experiencing cash flow problems since 2024. Discuss how this information impacts Mark's assessment of planning materiality for CC. An audit strategy provides the basis for developing an audit plan that details the nature, timing, and extent of audit procedures to be performed. Auditors spend considerable time developing the audit plan so they can perform the audit effectively and efficiently. Listed below are actions taken by an auditor. Determine if the items relate to the nature, timing, or extent of audit procedures. The components may be used once, more than once, or not at all. a. Chooses a test of controls to determine whether a client's monthly reconciliation process is being performed effectively. b. Uses a larger sample size of sales invoices for the current-year audit versus the prior-year audit. c Chooses a substantive procedure to determine whether a client's accounts receivable balance is valued appropriately. d. Decides to perform a substantive procedure at interim instead of year-end. e. Uses a smaller sample size because detection risk is high. f. Decides client's controls are not effective and will perform primarily substantive procedures. Identifies an account as high risk and decides to perform further audit procedures at year-end