Periwinkle Ltd sells office equipment and supplies. In recent years, it has faced increasing competition from a chain of office supplies stores which is owned by one of the major supermarkets. The management of Periwinkle have tried a series of promotions to boost sales and have introduced new products to attract new customers. In addition, they have closed several of the smaller stores which were suffering from the increased competition. Isaac Peach has been the audit partner for Periwinkle for three years and has noticed that the monthly reports for Periwinkle are being produced later each year and the CEO and CFO at Periwinkle are just qualifying for their annual bonuses.

Required

What concerns would Isaac Peach have about Periwinkle Ltd’s closing procedures when preparing for this year’s audit? Explain.