You are working on the audit of XYZ Ltd (XYZ) for the year ended 30 June 2022.

XYZ imports imports kitchen appliances and and distributes the goods to retailers around the country. XYZ has benefited from rising house prices in most capital cities over the past five years which have encouraged homeowners to spend money on kitchen renovations and make a profit on the sale of the property. However, some analysts believe that recent government changes to tax laws will discourage home renovations because it will be more profitable to sell houses unrenovated.

XYZ's share price has fallen significantly over the last year. They have a monthly reporting system for internal management. The audit team notice the reports are being issued later in the following month this year than they were last year on the instructions of senior management.

Required, in the LMS space provided:

1) When completing your audit risk assessment, would you consider this client high, medium, low or no risk? Give reasons for your answer (5 marks)