Essay question 2 (50 points) Based on the company and its environment, including its internal control, the auditors assessed the risk of material

Essay question 2 (50 points)

Based on the company and its environment, including its internal control, the auditors assessed the risk of material misstatements to the financial statements, whether due to error or fraud, and designed the nature, timing, and extent of further audit procedures to be performed. As a result of conducting the above risk assessment procedures, the audit program for year 2 includes the following changes from the audit program for year 1. The company has a calendar year end and operates only on weekdays.