It is now August 6, 2017. You, CPA, work in the internal audit department at Big Gas Corporation (BG), a large Canadian owned oil and gas company. The retail sites are independently owned and operated as franchises. The franchisees pay a fee based on a percentage of income before income taxes to BG. The fee is for national advertising, the use of the BG name and consulting advice on general business operations. As part of BG's mandate to help struggling franchisees, Hank Yarbo, the head of the internal audit department, asked you to fly out to Dog River, Saskatchewan. He wants you to take a look at what was happening at one of the franchisees, EZ Gas Corporation (EZ). EZ runs a gas station and convenience store that is located on the TransCanada Highway just outside the town of Dog River. EZ has been in operation now for two years, so BG was expecting them to show a profit for fiscal 2017. However, the May 31, 2017 year-end results show a loss. As part of your internal audit, Hank wants to make sure that the financial results are accurate and wants to understand what caused the loss. You have just