To identify the audit tests needed and related financial statement risks, we can consider each audit test and its applicability to different risks:

Inquiry:

Possible Risks: Existence or Occurrence, Completeness, Valuation, Rights and Obligations, Presentation and Disclosure, Accuracy, Classification, Cutoff. Audit Tests Needed:

Inquire management about the existence of certain transactions or assets. Discuss with management about the completeness of recorded transactions. Ask about valuation methods used for assets and liabilities. Confirm rights and obligations related to assets and liabilities. Inquire about the presentation and disclosure of financial information.

Observation:

Possible Risks: Existence or Occurrence, Completeness, Rights and Obligations. Audit Tests Needed:

Observe physical inventory counts to verify existence. Observe processes to ensure completeness of transaction recording. Observe the use of assets to confirm rights and obligations.

Examination:

Possible Risks: Existence or Occurrence, Completeness, Valuation, Rights and Obligations, Presentation and Disclosure, Accuracy, Classification, Cutoff. Audit Tests Needed:

Examine supporting documents for transactions to verify occurrence. Review documents to ensure all transactions are recorded $($completeness$).$ Examine valuation reports for assets and liabilities. Review legal documents to confirm rights and obligations. Examine financial statements for proper presentation and disclosure.

Re$-$performance:

Possible Risks: Accuracy, Completeness, Valuation. Audit Tests Needed:

Re$-$perform calculations to verify accuracy. Re$-$perform processes to ensure completeness. Re$-$perform valuation calculations to verify accuracy.

Computer$-$assisted audit techniques $($CAAT$)$:

Possible Risks: Completeness, Accuracy, Classification, Cutoff. Audit Tests Needed:

Use CAAT to analyze data for completeness. Use CAAT to verify the accuracy of data processing. Use CAAT to check classification of transactions. Use CAAT to verify the timing of transactions $($cutoff$).$

Each audit test can address multiple risks, and the choice of test depends on the specific circumstances and the auditor's judgment.

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Identify the control objective and description of procedures in place that is relevant to mitigate the identified risk of material misstatement and achieve the objective. Include a detailed description of the control procedures noting the following:

$1)$ Who performs the control procedures?

$2)$ How is$/$are the procedure$($s$)$ performed?

$3)$ How is the performance of the control activity documented $($i$.$e$.,$ what forms are used$)?$

$4)$ How is performance of the control activity evidenced $($i$.$e$.,$ signature and date on form$)?$