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Question:
Propose a broad audit plan:
a. What material kinds of transactions and transaction cycles are involved?
b. What are the high-risk areas?
c. What do you meant by the low-risk areas?
d. If management faced tremendous pressure regarding the entity's financial performance, what opportunities exist for them to engage in fraudulent financial reporting?
e. To what extent do you suppose it will be appropriate to reduce assessed control risk?
f. How can audit effort be allocated among geographical areas?
g. What form of auditors' report do you expect will be issued; what does it understand?
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