Audit Planning and Analytical Procedures(15 marks) QUESTION 4 (A) Audit Planning Two independent material situstions are given below with regards to Manukau Super Timber Limited (S.T) a large retail company () Michelle White was the long-term CEO of S.T. until she died unexpectedly during the current financial year. Following her death, her son Ronald White became the new CEO of S.T and embarked on a rigorous cost-cutting exercise, which included a reduction in key staff in the credit department. (ii) During the planning stage of the audit of S.T., the audit senior assessed the sales control systems to be effective. However, when testing sales, the audit assistant traced two sales to supporting documentation (invoices) that had dates that were in the prior financial year. Required: For each of the two situations described above: (1) Outline briefly why the situation constitutes an audit risk. (4 marks) 3 marks) Explain the component of the audit risk model affected (2)