Consider each of the following situations, which are independent of each other:

Consider each of the following situations, which are independent of each other:

a) Your audit plan for sales places substantial reliance on the system of internal control and the use of analytical review. Your testing of the internal control system for sales has found a significant number of instances where clients credit ratings have not been checked and abnormally large discounta have been given. The sales manager states that these changes have been the result of difficulties in maitaining past sales level.