Brack and Kabrac Corporation (BKC) of the United Arab Emirates sells financial services to clients who put up a minimum investment of €1,000,000. Abdel-Masoud, Ahrens and Spence, an auditing firm, are retained to audit BKC’s financial statements. Considering the exotic financial instruments BKC deal in and the large amounts of money involved, the audit firm assesses the risk of material misstatement as high. Using the list of overall responses to address the assessed risks of material misstatement at the financial statement level from the Introduction to this chapter, discuss how the audit firm should respond. Give specific examples.