IMPORTANT NOTE: Answer in your own words, DO NOT COPY from slides, fellow students, or internet sources without proper citation.

Q1. What are two potential benefits and two potential risks of using IT for an entity's internal control? (2 Marks).

Q2. For a particular audit, the sample size for testing controls over the revenue cycle is relatively large. What can you infer about the desired confidence level, the tolerable deviation rate, and the expected population deviation rate? (2 Marks).

Q3. If you were asked to assess the inherent risk factors when auditing the revenue process of ARAMCO. What type of inherent risks factors would you consider? Provide a discussion of each factor identified. (3 Marks).

Q4. Explain the importance of observing physical inventory during an audit. Detail your answer. (3 Marks).