Question
The audit staff have recently completed risk assessment procedures to gain an understanding of Chocolate Delight's (CD) business and to identify risk factors relevant to
The audit staff have recently completed risk assessment procedures to gain an understanding of Chocolate Delight's (CD) business and to identify risk factors relevant to the risk of material misstatement.For each risk factor below, decide whether each piece of information would into your assessment of inherent risk (IR) or control risk (CR), and whether it would increase or decrease the specified area.Explain why the risk increased or decreased.Use the following table format for your answer.
Risk Factor
Increase or decrease of IR or CR (1 mark each)
Explain why the risk increase or decrease? (1 mark each)
1.Due to the size of the CD's business, only one accounting clerk does most of the accounting.
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