You are working with William Bond, CPA, and you are considering the risk of material misstatement in planning the audit of Toxic Waste Disposal $($TWD$)$ Company$$s financial statements for the year ended December $31,20$X$0.$ TWD is a privately owned entity that contracts with municipal governments to remove environmental waste. TWD$$s Board of Directors is controlled by Janice Mead, the majority stockholder, who also acts as the chief executive officer.

Based only on the information below, indicate whether each of the following factors would most likely increase, decrease, or have no effect on the risk of material misstatement.

The accounting dpartment has experienced a high rate of turnover of key personnel

During December, TWD completed a barter transaction with a Municiplaity.

TWD sold one half of its controling interest in UEL Co TED Retained significant influence over UEL