申論題

II. (24%) CPA Chen is considering acceptable audit risk in planning the audit of National Federal Bank (NFB) Company’s financial statements for the year ended Dec. 31, 20X1. Audit risk is influenced by the risk of material misstatement (including fraud risk), which may be indicated by a combination of factors related to management, the environment, and the entity. For each of the following 12 factors, indicate (a) whether they increase (I) or decrease (D) the risk of material misstatement and (b) whether they create a risk of fraud (Yes (Y) or No (N)).