You are the audit senior responsible for the audit of Model Limited. You are currently planning the audit for the year ended $30$ June $2022.$ During your initial planning meeting held with the financial controller, he told you of the following changes in the company's operations.

Model has planned to close an inefficient factory in country New South Wales before the end of $2022.$ It is expected that the redeployment and disposal of the factory's assets will not be completed until the end of the following year. However, the financial controller is confident that he will be able to determine reasonably accurate closure provisions.

To help achieve the budgeted sales for the year, Sampson is about to introduce bonuses for its sales staff.

The bonuses will be an increasing percentage of the gross sales made, by each salesperson, above certain monthly targets.

The company is using a new general ledger software package. The financial controller is impressed with inte new system, because management accounts are easily produced and allow detailed comparisons with budgets and prior$-$period figures across product lines and geographical areas. The conversion to the new system occurred with a minimum of fuss. As it is a popular computer package, it required only minor modifications.

Required

A $-$ Describe the overall impact on audit risk and identify the specific components$)$ of audit risk affected;

B $-$ Describe the effect on the overall audit approach of each scenario