You are about to begin the year-end audit for ABC. Consider each of the following independent situations. (i) BSB has been involved solely in the manufacturing of cakes and cookies for many years. As part of its expansion project, it recently ventured into property development by purchasing a small property development company. (ii) During the year, Mr. S was appointed as the new CEO. Mr S felt that the company was too slow in responding to changes. In the first month of his appointment he has made many changes in the strategic direction as well as the operations of the business. (iii) It was recently discovered that a trusted employee had committed fraud. He stole a substantial amount of money from the company without being detected since no bank reconciliation was prepared. (iv) During the year a new management incentive scheme was introduced. The bonus is calculated on the basis of the increase in net profit over the prior year. (v) The company informed that the financial controller is responsible for both recording and approving the write off of accounts receivable. Required: Explain how each of the scenarios above affect (increase/decrease) audit risk (inherent or control risk)