If you identify a business risk, it is important to analyze ...

If you identify a business risk, it is important to analyze the new identified risk in conjunction with other known business risks and check for consequence of material misstatement at various levels of the audit.

​On another note, to gain an understanding of the control activities component of an internal control, ,it should be sufficient enough to understand the design and implementation of all control activities relevant to the entity’s accounting system and financial reporting.

Example of likely misstatement in a financial statement audit are extrapolation of errors in a sample. 

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