a$.$The internal auditor reports to the controller and the controller reports to Janice Mead.b$.$TWD$\text{'}$s bank has a loan officer who meets regularly with TWD$\text{'}$s CEO and controller to monitor TWD$\text{'}$s financial performance.c$.$An initial public offering of TWD$\text{'}$s stock is planned for late $20$X$2.$d$.$During $20$X$1,$ litigation filed against TWD from an action $10$ years ago that alleged that TWD discharged pollutants into state waterways was dropped by the state. Loss contingency disclosures that TWD included in prior years' financial statements are being removed from the $20$X$1$ financial statements.e$.$TWD has such a strong financial presence in its industry to allow it often to dictate the terms or conditions of transactions with its suppliers.f$.$The accounting department has experienced a high rate of turnover of key personnel.g$.$During December $20$X$1,$ TWD signed a contract to lease disposal equipment from an entity owned by Janice Mead's parents. This related party transaction is not disclosed in TWD$\text{'}$s notes to the $20$X$1$ financial statements.h$.$TWD$\text{'}$s Board of Directors is controlled by Janice Mead, the majority stockholder, who also acts as the chief executive officer.