1. Presented below are nine information items an auditor obtained during preliminary audit procedures. For each item below, indicate whether the information indicates an increased risk of fraud. If the information does present increased fraud risk, indicate which fraud condition (incentives/pressures, opportunities, or attitudes/rationalizations) is present.INFORMATIONFRAUD RISKFRAUD CONDITION1.Significant operations are located and conducted across international borders in jurisdictions where differing business environments and cultures exist.2.There are recurring attempts by management to justify marginal or inappropriate accounting on the basis of materiality.Pressures3.The companys controller works very hard, including evenings and weekends, and has not taken a vacation in two years.X4.The companys board of directors includes a majority of directors who are independent of management.5.Assets and revenues are based on significant estimates that involve subjective judgments and uncertainties that are hard to corroborate.6.The company is marginally able to meet exchange listing and debt covenant requirements.7.The companys financial performance is threatened by a high degree of competition and market saturation.8.New accounting pronouncements have resulted in explanatory paragraphs for consistency for the company and other firms in the industry.9.The company has experienced low turnover in management and its internal audit function.