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The Nature of Risks: Inherent and Control Risks

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Based on the information presented in the application form linked below, determine whether the factors are likely to increase, decrease, or have no effect on the risk of material misstatement. Do these factors indicate inherent risk or control risk? In the provided fields in the application form, mark your answers as Yes (Y) or No (N).

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Solution Summary

The author determines if certain facts increase or decrease risk for an apple orchard company and if the nature of the risk is either an inherent or a control risk. He also explains the rationale for all answers.