mortgages to large investment trusts. Despite recent volatility of interest rates, DC has been able to continue selling its mortgages as a source of new lendable funds. 2. DC's board of directors is controlled by Si Hai, the majority shareholder, who also acts as the chief executive officer. Management at the company's branch offices has authority for directing and controlling DN's operations, and is compensated according to branch profitability. The internal auditor reports directly to Yuqian, a minority shareholder, who is chairman of the audit committee. 3. The accounting department has experienced little turnover in personnel during the 5 years for which Tang has audited DC. DC's formula constantly underestimates the allowance for loan losses, but its financial controller has always been receptive to Tang's suggestions to increase the allowance. 4. During 2020, DC opened a branch office in a metropolitan area 30 kilometres from its principal place of business. Although this branch is not yet profitable (as a result of competition from several well-established banks), management believes it will be profitable by 2022. 5. During 2020, the company increased the efficiency of its operations by installing a new computer system. Required: Based only on the information provided, indicate the factors that would: a) most likely increase the risk of material misstatements b) most likely decrease the risk of material misstatements