financial accounting

Based on the reading of only the “Brief Description of Operations and Management obtained during general information gathering” list all possible fraud risk factors included in that section. Do not refer to, or base your answer, on the accompanying financial statements and related notes and management explanations. For each factor also indicate the probability of it driving the management to commit fraud (The number of spaces given is not indicative of the actual number of factors present in the case above).

1. ___________________________________________________________________

2. ___________________________________________________________________

3. ___________________________________________________________________

4. ___________________________________________________________________

5. ___________________________________________________________________

6. ___________________________________________________________________

7. ___________________________________________________________________

8.___________________________________________________________________

9. Please classify the above recognized factors as either “pressures/incentives,” or “opportunities,”. Please put the serial number of each driver under their respective headings

Please indicate any potential material misstatements noted during the reading of the financial statements and brainstorming session. You may refer to the case information, perform calculations, and make assumptions, if necessary. Feel free to refer to the case booklet at any time while completing this task. Additionally, the calculations provided in the common sized balance sheet, income statement and cash flow statements have been recalculated and are accurate. (The number of spaces given is not indicative of the actual number of instances of material misstatements).

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