b. Work together to develop a fraud risk matrix (see Exhibit 5 for an example) that identifies the three fraud risk factors that your team believes present the greatest concern to the audit based on your team's assessment of their likelihood and significance. Focus on those fraud risk areas that pose the greatest potential threat for a material misstatement in the financials. c. Determine how the nature, timing, and extent of the audit procedures should be altered to respond to these identified risks