Which one of the following statements is correct regarding risks and risk indicators for the Audit committee?

1. Hard risks are seen as a frequent Senior-management over-rides and soft risks as high turnover of senior staff

2. Risk indicators are indicated through industry growth/decline from industry reports and unrealistic earnings expectations

3.soft risks are seen as an inappropriate tome at the top and hard risks as frequent organizational changes

4. Risk indicators are indicated through the lack of succession plans and key staff lost