Based on your reading of the case, please answer the following questions:
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. Please classify the fraud risk factors into pressures and opportunities.
Please indicate any potential material misstatements noted during the reading of the financial statements. You may refer to the case information, perform calculations, and make assumptions, if necessary. How and where do you believe the client’s financial statements might be susceptible to material misstatement? Identify the specific management assertions which could be violated for each material misstatement identified and explain how.