Gren Ltd. has been growing rapidly (the has grown about in each of the past five years) and has recently engaged your finn as its auditor. However, on contactmg the previous auditor, you learn that a dispute led to the ffm's dismissal. The client wanted to recognize income on contracts for items produced but not shipped. The change in accounting principle would have Increased net income by 33% dunng the last year. The company's profits have beal Increasing over the past several years. Following son of the statistics for tl conA)any: Chet-view of Operational Data Green Ltd. (Sales and Net biconp Reported m S Nfrllious) Net S Pri 2010 ssomoo $17.00 Sismoo 59610 $28.00 2011 ssso_oc sssoc Grosz Pnfit ) a ble ofDay: sales in of Days' in Ezdmg 2012 542.00 $19.00 9.60% 2S_sc; 533.00 2013 snoo S2&co 10.80% 321000 SL2600 sss.co 2014 51.30010 sssao 3360% 00 00 2014 Com titor 51,500M ssooo 36.00% S46:oo Additional infomution available to the auditor includes the following: The conVany used its new and 11243roved technology for the increase both in sales and in gross The convmy claims to have decreased administrative exlrnse, thus increasing net profits _ The con4)any has reorganized its sales process to a more centralized approach and has envowered Individual sales managers to negotiate better prices to sales as long as the amounts are within cotporate guidelines The c onVany has changed its salesperson con4)ensation by increasing the commission on sales to Sales commissions are no longer affected by retumed goods if the goods ar renamed more than 90 days aner sale and'or by not collecting the receivables. Green I-td has justified the changes in sales commissions on the following gounds: The salesperson is not responsible for quality issuesthe main Rason that products are The salesperson is not responsible for approving credit; rather credit approval is under the direction of the obal mana er