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You are a senior audit manager for Martin, Argiro and Bukrinsky LLP (MAB LLP) assigned to audit Calm Teas Inc., (CTI). CTI operates a chain of tea shops in the GTA. They are owned as a cooperative and got their start as an outlet for fair-trade tea. Fair trade means the tea leaves farmer is paid more than if they sold their tea leaves on the open market. The expectation is that the extra money will help the farmer's community improve economically.
Problem 1: CTI's executive director has engaged MAB LLP to perform the audit. As the senior manager you are the main point of contact for the client and for your preliminary audit plan you must assess the risks of this engagement. Prepare the report.
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