Tech Ltd (Tech) runs a chain of superstores in Australia. Tech highly depends on the electronic data interchange system to manage their transaction processes with the suppliers. Each individual store can raise their own inventory requisition without authorisation from the central purchase department and as a result saves them a lot of time. Mr. Abbot is the new CEO, who joined Tech three months ago. He used to work in the fashion industry and hence he is quite confident that Techs superstores sales can be increased by introducing clothing labels in the stores.

Required For each of the above independent situations, answer the following: (a) Identify and discuss why the above situation represents a risk. (b) By applying auditing knowledge, identify the main account or group of accounts affected in the audit plan by the risks identified in (a). (c) Identify how the audit plan will be affected by the risks and recommend specific audit procedures to address these risks.