Answer the following questions based on the information presented for Cloud 9 in Appendix B and in the current and earlier chapters. You should also consider your answers to the case study questions in earlier chapters.
(a) Based on your conclusions from the case study questions in previous chapters (particularly chapters 4 and 8), complete the following worksheet to determine the overall risk assessment (ORA) and the acceptable detection risk (DR).

(b) Prepare common-size statements for Cloud 9. Use total assets as the basis for the balance sheet, and revenue as the basis for the income statement. Comment on any audit implications revealed by your statements.

ACCOUNT ASSERTION RISK Sales- occurrence Sales_ completeness Trade receivables existence Trade receivables compieteness Cash- existence INHERENT OVERALL RISK DETECTION CONTROL RISK ASSESSMENT RISK