Based on facts in each scenario, recommend the most appropriate audit strategy (combined or substantive). Scenario Strategy

Based on facts in each scenario, recommend the most appropriate audit strategy (combined or substantive).

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Scenario Strategy Big Bank is a multinational bank that operates across the globe. Each day, the bank processes billions of monetary transactions. The bank has a large well-established internal audit department. Last year, internal auditors reported to the board of directors about some control weaknesses that they had identified. These weaknesses are currently being addressed by the bank's senior management. In the past year, after starting to work as a controller, Tony has established a strong control environment and tone at the top to ensure employees operate ethically, adhering to stated policies. Tony holds daily management meetings to review operations and financial information. Budget and actual results are also reviewed by Tony, who interprets the results and sets the direction for the next day. A year ago, LVSports Ic., a large chain of stores that carry sports equipment, hired a new controller. The controller took it upon herself to conduct a walk- through of each accounting process. The purpose of the walk-throughs was to identify and fix any control gaps. After the gaps were fixed, the controller hired a consultant to review whether the updated controls improved LVSports's con- trol environment. The consultant reported back that, on paper, the updated controls were really good, but that in most cases, staff did not follow them. Over the past 12 months, 2Fast Inc., a private consulting company, has lost half of its accounting staff to retirements. For the past six months, the company has relied on temporary staffing agencies to fill the vacant positions. Fraser, the company's new controller, is not happy with the temporary staff provided by the agencies. They are mostly new university graduates with little prior work experience who make a lot of significant mistakes. Emilia Inc. provides bridge design engineering services. The company has grown rapidly over the past five years. Last year, the company procured a new financial accounting IT system. After the system was installed, things appeared to be going well until the company realized that it forgot to install required weekly system upgrades. When the upgrades were finally installed, the system crashed several times and a significant amount of financial information was comupted. Management is in the process of trying to fix the corrupted information.