Required:$1.$Based on your responses to the practical question in Topic $3($last week$),$ evaluate the audit risk model for Wirecard which provides an initial assessment of inherent risk, control risk and detection risk, providing reasons and an assessment $($low$,$ medium and high$).$Audit Risk Model $($AR $=$ IR x CR x DR$)$Partl: Inherent risk will be hight.Complex Transactions: Due to Wirecard's huge volume of digital transactions, fraud is challenging to identify.Working in the financial technology sector, which is vulnerable to fraud because of its rapid innovation and lax regulatory monitoring, poses an industry risk.Fraud Indicators: Red flags are raised by financial disparities in cash holdings, such as $47\%$ in $2019$ vs $36\%$ in $2014.$Considerable Subjectivity: Other Intangibles $(10\%)$ and Goodwill $(12\%)$ imply a dependence on easily manipulable non$-$physical assets.Evaluation: High IR $($High risk of fraud and complexity leading to misrepresentation$)\mathrm{.}2.$ Explain the appropriate audit strategy based on your audit risk assessment, identifying any accounts the auditor should focus on in during testing$\mathrm{.}3.$ Using Wirecard's financial statements above, apply analytical procedures and identify any other accounts that require more attention during the audit in $2020.$