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Question - Lightning Ltd distributes and supplies electrical appliances. The company is an ongoing client of your audit firm.
From a discussion with the General Manager during the planning of the audit, you have ascertained the following:
During the year, several members of the board of directors retired and were replaced by prominent businesspeople previously associated, but not directly connected, with the company.
Required -
(a) State the effect on Inherent Risk or Control Risk.
(b) Provide an explanation for your answer in part (a).
(c) Briefly discuss how the situation will affect your overall plan for the expected scope and conduct of the audit.
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