Risk Assessment Process: Critical thinking & analysis Briefly explain how each factor below identified during the auditor's risk assessment process during the audit planning phase may result in assessment of increased risk of material misstatement. Identify specific classes of transactions, account balances or related management assertions the auditor may be concerned about as a result of this risk, and explain specific ways the auditor may respond to this risk during the audit. (a) A significant portion of top management compensation is in the form of incentive compensation tied to the achievement of earnings performance targets. public company's industry has experienced a slowdown of sales volume in the current economy. The company's chief executive officer is known for his aggressive approach to (b) A concerned with meeting analyst's forecasted earnings