Question $1(3$ points$)$

vwran

Dominic audited $2024$ revenue for Murray's Cheese, a specialty cheese company that sells a variety of products, including expensive cheeses from France and italy, as wqll as less$-$expensive cheeses from Wisconsin. Dominic believed that the risk of management override of internal control was low, given the strong health codes applicable to selling perishable foods. Due to the low risk of material misstatement, he chose to perform analytical procedures to audit revenue. Dominic developed an expectation for revenue using the average price of cheese sold by Murray's and the total quantity of products sold during the year. He also compared Murray's $2024$ sales to average sales from the grocery industry. What would your feedback be to Dominic?

The health codes will not reduce the risk of management override of internal control; it always exists. Management override and revenue recognition are presumed fraudulent financial reporting risks. Thus, you need very persuasive evidence from your analytical procedures to respond to these high risks. Neither of your proposed analyses result in precise expectations. Grocery industry sales are not comparable since they include sales of many products in addition to cheeses, and your analysis using quantities is an aggregate analysis.

The health codes will reduce the risk of management override of internal control, nd revenue has a low risk of material misstatement. So$,$ using analytical