35. Given each scenario listed below, please explain to which arm of the audit risk model the pertains (AR. IR, CR. DR) and how the scenario will affect planned audit work (increase, decrease change). If than one PRIMARY component affected to explain.(7.5 points total, 2.5 points each) a. During preliminary analytical procedures, you determine that your client has changed its method of y valuation from weighted average cost to first-in first-out. This has resulted a significant increase in the value of inventory as of year end. ARM component(s) affected Effect on audit work to be performed b. The internal audit function reports directly to the audit committee and is highly independent from management. Additionally, the audit commitice meets frequently and monitors senior management effectively ARM component(s) affected Effect on audit work to be performed c. You are auditing a company which was a private company in the prior year, but was taken public in the current year, which you believe significantly increases litigation risk exposure. You are thereforse willing to accept less risk that the audit will fail. ARM component(s) affected ffect on audit work to be performed