Question $5$

You are performing initial scoping for your group audit, which has $15$ components.

Based on your judgment and the following case study facts, at which component would you plan for audit work to be performed because it is quantitatively significant?

Component $1,$ because its total liabilities are $9\%$ of consolidated liabilities and its total assets are $11\%$ of consolidated assets.

Component $9,$ because its total expenses are $15\%$ of consolidated expenses and its total revenues are $5\%$ of consolidated revenues.

Component $12,$ because its total expenses are $10\%$ of consolidated expenses and its total liabilities are $12\%$ of consolidated liabilities.

Component $5,$ because its total liabitities are $12\%$ of consolidated liabilities and its total revenues are $7\%$ of consolidated revenues.