Consider an audit client that manufactures fishing boats and sells them all over the country. Boats are sold to dealers who finance their purchases with their banks. The banks usually pay your client within two weeks of shipment. The company's profits have been increasing over the past several years. To perform preliminary analytical procedures you have obtained the following information related to your 2014 audit ($ in millions):

a. Assume that you had expected that your client's performance would be similar to that of the client's major competitor. Based on these expectations, identify potential risk areas and explain why they represent potential risks.
b. Suggest possible explanations for any unexpected results.
c. What inquiries and follow-up audit procedures might be performed to determine the accuracy of the client's data?
d. As part of the brainstorming session, be prepared to discuss how the CFO might use accounts receivable and inventory to conceal the embezzlement of cash.
e. Discuss the importance of professional skepticism when performing preliminary analyticalprocedures.

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Major Campetitor 2014* 2013 2012 2011 2010* (2014) 4.2 3.3 2.3 18 17 Accounts receivable Inventory Accounts payable Sales Gross profit (%) 19 Number of days 29 16 6.8 16.010.0 7.2 5.5 5.1 13.9 3.1 2.6 .9 1.514 3.2 4.777.9 56.8 43.6 39.8110.3 21 17 18 17 18 16 sales in receivables Numberof Days' 69 Sales in ending 47 46 46 47 46 Aud ited Unaudibd