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You are the auditor for Rambutan Software, a large game development company with over 2,000 employees. For each of the past three years, you have assessed the control risk of the sales system as moderate to low, adopting a combined audit approach.This year, due to Covid-19 pandemic restrictions, all staff have transitioned from "in office" to "work from home" (WFH). All WFH staff now access company information systems using encrypted VPN connections.
REQUIRED:
Problem 1. Assuming that all other internal control systems have not changed, will the WFH arrangements change your assessment of the risks of material misstatement for the sales system? Explain.
Problem 2. What audit approach will you adopt for the sales system- combined or substantive? Why?
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