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1 Final Review –Audit--Simulation Part Index: Page 2: Topic 2: Planning Page 9: Topic 3: Transaction Cycles Page 18: Topic 4: Evidence and Communications Page 25: Topic 6: Statistical Sampling Page 31: Topic 7: Options Page 39: Topic 8: Other Reports & Services Page 44: Topic 9: Governmental Auditing Topic 2: Planning Tab 2 Durham CPA is considering audit risk at the financial statement level in planning the audit of DML Company’s financial statements for the year ended December 31 20X4. DML is a privately owned entity that contracts with outside companies to provide facilities management services for professional offices. Tab 4 Based on only the information below, indicate whether each of the following factors would most likely increase, decrease, or have no effect on audit risk. For each of the items in the table below, identify the effect on audit risk by double-clicking on a shaded cell and selecting the appropriate option from the list provided.
