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You are the audit supervisor of Seagull & Co and are currently planning the audit of your existing client, Eagle Heating Co., for the year ending December 31, 2020. Eagle manufactures and sells heating and plumbing equipment to a number of home improvement stores across the country.
Required
Question 1: Explain the factors that will impact the risk of material misstatement at the financial statement and account levels in planning the audit of Eagle.
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