The Duncan Credit Union (DCU) is located in a rural, agricultural community, just north of Victoria. People who bank at DCU must live in the area. The area has been harmed by droughts in recent years and by declines in commodity prices. DCU's profits have decreased as a result. DCU prepares its financial statements in accordance with International Financial Reporting Standards. Lansdown and Interurban, LLP has audited its financial statements for the past several years. You, CPA, are a senior with the audit firm. You are working on DCU's December 31, 2021 year-end audit. It is now early January 2022, and you are at DCU's office reviewing the information gathered to date. DCU was founded in 1952, and it is focused on serving the community. It has adopted liberal lending practices and investment philosophy in the local community. This focus distinguishes it from other financial institutions, which are primarily branches of national and regional banks, and has given DCU a 75% share of the market in the area. DCU has been headed by the general manager, Teddy Roberts, for the past ten years. Teddy reports directly to the Board of Directors, which is comprised of local people, some of whom have no formal financial training. Teddy has always been accessible to members of the credit union and, on occasion, he has intervened in favour of the lender over the staff. He maintains that this flexibility is crucial to generating revenue, which is an important objective of the Board. The loan manager, Shelly Mitchel, joined DCU in 2021. She is responsible for the entire lending function, which includes authorization of loans, appraisal of collateral, and assessment of the collectability of outstanding loans. The loan portfolio is the largest asset on the balance sheet, representing 75% of total assets. The accountant, Val Larson, and the head teller, Joannie Black, both have 15 years of experience at DCU. Both are married to farmers and work to supplement their income. Both families are members of DCU, and all their personal and business transactions are conducted through the credit union. As you read through your notes, Teddy interrupts you to tell you about some of the events that have occurred at DCU during the year. DCU foreclosed on a large loan and sold the land held as collateral. Done effect of this sale was to depress the land prices in the surrounding area. DCU still maintains a high inventory of land received from past foreclosures but has decided to hold onto this land for fear of depressing land prices further. As a result of the depressed state of the local economy, provisions have recently been made to allow some customers to repay their loans with grown crops (i.e., hay and wheat) instead of cash. Although such payments are not a common practice, Teddy has approved these transactions on an exception basis. Even though the economy is depressed, Teddy believes this will turn around and loans will be collected over the long term. Therefore, he has instructed to Shelly Mitchel, Loan Manager, not to write off any significant loans as loan balances. Question 1 (4 points) Listen Perform an inherent risk assessment for DCU, at the overall financial statement level. Listen 2. Perform a control risk assessment, at the overall financial statement level. Question 3 (1 point) Listen Conclude on the overall risk of material misstatement at the overall financial statement level, and cite the main reason(s). Question 4 (2 points) > Listen Given your audit risk conclusion, describe the impact on detection risk, approach and the type of audit evidence you will obtain