Problem:

You are an auditor of a company which operates three large departmental stores at Grand Bay, Port Louis and Tamarin.

You are preparing your audit plan and you are planning to carry out detailed audit tests on a rotational basis. You consider that all departments within the stores should be covered over a period of 3 years but that more attention should be given to those where the "audit risk" demands it.

You are required to detail the factors which you would consider in order to evaluate the audit risk faced by each department.