Question: You are the auditor of Royal Health Limited (Royal). Royal is a public company that grows medicinal plants and sells them across North America, Europe,

You are the auditor of Royal Health Limited (Royal). Royal is a public company that grows medicinal plants and sells them across North America, Europe, and the Far East. Its largest expense is marketing. All its marketing is done by another company that is owned by one of Royal’s directors.

Required:
Identify three (3) key audit issues in this company and explain how these will affect your audit risk, using the audit risk model.

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