Integrated Case Application$-$Pinnacle

Manufacturing: Part II

$9-40($Objectives $9-69-7$ In Part I of the case, you performed preliminary analytical procedures for Pinnacle $($here$).$ The purpose of Part II is to identify factors influencing r and the relationship of risks to audit evidente.

ing the planning phase of the audit, you meet with Pinnacle's management team and form other planning activities. You encounter the following situations that you lieve may be relevant to the audit:

Your firm has an employee who reads and saves articles about issues that may affect key clients. You read an article in the file titled, "EPA Regulations Encouraging Solar$-$Powered Engines Postponed?" After reading the article, you realize that the regulations management is relying upon to increase sales of the Solar$-$Electro division might not go into effect for at least $10$ years. A second article is titled, "Stick to Diesel, Pinnacle!" The article claims that although