Please answer the following questions based on the information presented for Cloud 9 in the appendix to the text and the current and earlier chapters. You should also consider your responses to the previous discussions. Required: a. Using professional judgment, please complete the following worksheet to determine the risk of material misstatement (RMM) and the acceptable detection risk (DR). Your responses should be either "low," "medium," or "high." Post the worksheet (or, ideally, an image) and add brief explanatory comments (~ full paragraph). b. Scan the line items in the prior-year financial statements and the current-year trial balance for Cloud 9. Using your knowledge of financial accounting, identify four or five line items that require estimates or fair value measurements. For each item, comment on the inherent risk factors surrounding that item and if they would lead to a higher or lower inherent risk assessment.

Inherent Risk Control Risk Risk of Material Misstatement Detection Risk

Sales - occurrence

Sales - completeness

Trade receivables - existence

Trade receivables - completeness

Cash - existence

Cash - completeness