The president of a public company has a reputation for being hard-nosed with a violent temper. He has been known to fire a divisional manager on the spot if the manager did not achieve profit goals.

(a)State the effect on Inherent Risk and/or Control Risk. (1marks)

b)Provide an explanation for your answer in part (a).

(c)Briefly discuss how the situation will affect your overall plan for the expected scope and conduct of the audit.