List the fraud risk factors that the CPA firm might encounter if they accept this audit...
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List the fraud risk factors that the CPA firm might encounter if they accept this audit engagement from Lakeside company. Be sure to include a discussion of all items that will probably require special attention during the audit. For each of these fraud risk factors, indicate how the auditor should follow up on each potential problem if the engagement is accepted. Use the following format: Fraud Risk Factors Auditor Follow Up Fraud Triangle Bonus System - This system has been recently installed by Lakeside, so very little is known about its effects upon the financial results of the company Related Party Transactions - The case indicates that Lakeside has begun to have financial dealings with the president of the company. Rental Agreements - Five of the stores have been leased and, apparently, Store Seven will be rented from Rogers. Rental agreements pose the question as to the need for capitalizing the lease. Accounts Receivable - All distributorship sales are made on credit. List the fraud risk factors that the CPA firm might encounter if they accept this audit engagement from Lakeside company. Be sure to include a discussion of all items that will probably require special attention during the audit. For each of these fraud risk factors, indicate how the auditor should follow up on each potential problem if the engagement is accepted. Use the following format: Fraud Risk Factors Auditor Follow Up Fraud Triangle Bonus System - This system has been recently installed by Lakeside, so very little is known about its effects upon the financial results of the company Related Party Transactions - The case indicates that Lakeside has begun to have financial dealings with the president of the company. Rental Agreements - Five of the stores have been leased and, apparently, Store Seven will be rented from Rogers. Rental agreements pose the question as to the need for capitalizing the lease. Accounts Receivable - All distributorship sales are made on credit.
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Description Fraud Risk Factors Auditor Follow Up Fraud Triangle Bonus System This system has been recently installed by Lakeside so very little is known about its effects upon the financial results of ... View the full answer
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