With respect to the risk of material misstatement, an area of major concern to all firms is the handling ot cash, and subsequent cash receipts and disbursements. As part of their system of internal control, most if not all frrms introduce controls over cashi transactions in an attempt to lower the risk of material misstatement in this area. Which of the following scenarios represent a situation whereby the risk of material misstatement has likely been decreased? Sadler Firm has recently entered into a major contract with a new customer to provide goods shipments bi-weekly. Because the client represents a source of major potential revenue for Sadler, the decision was made by senior managervent to immediately extend generous credit terms. Johnson Company has recently laid off many higher paid, more experienced employees that dealt with cash receipts amd disbursements. This move was part of a major cost-cutting exercise by Johnson Company. As part of an investigation into cash handling practices at Dewey Firm, the internal audit function has determined a number of employees colluding to embezzle cash from the firm, and has notified management accordingly. Berry \& Co. have recently undergone installation of a new IT system companywide. As part of the installation of this new system, Berry \& Co. have switched over to an electronic funds transfer (EFT) system for all cash receipts