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Mark to review this question at the end of the exam Company 1: CD Inc. is a chain of dress shops owned by Molly and her mother Betsy. Molly handles all the inventory purchases and Betsy supervises all of the accounting. The company is debt- free, as the owners have always used the company profits for expansion. Betsy is not a professional accountant, but she has extensive bookkeeping experience. She did not set up the accounting system herself and instead hired an accounting firm to do it for her. She does, however, hire all of the accounting staff herself. The company currently has an accounting staff of eight. They are very experienced and there has been no staff turnover in the last five years. The company is planning to acquire a small chain of dress shops that is in receivership. In order to do this, it needs to secure a bank loan. The bank requires audited financial statemen Company 2: HH Producers is a public company with 600,000 issued and outstanding shares. Over the last few years, the company has been aggressively acquiring smaller compani a result of these acquisitions, the company's sales have increased tenfold over the past five years. The company is currently involved in a hostile takeover of a local company. The co is also heavily debt-financed. HH Producers' accounting staff consists of three full-time employees and ten part-time employees. Although the three full-time staff members have been with the company for at lea years, there has been high turnover among the part-time employees. Because of this, adherence to internal controls is not a priority. Required: a. Assess the audit, inherent, control, and detection risk-whether low, medium, or high-for each of the two companies above. Provide reasons f b. State, with reasons, whether the amount of evidence obtained through the use