Read each case and evaluate how you might "`connect the dots" from the results of fraud risk assessment procedures. Identify whether a fraud risk factor is present and next steps the engagement team might perform to determine whether there is a risk of material misstatement due to fraud. (Note that the presence of a fraud risk factor may or may not lead to identification of a risk of material misstatement due to fraud). 5. Using the knowledge you have gained from these case studies, determine the leading practices for performing an effective fraud risk assessment. Case A Under Too Much Pressure? Sales 'R Us Corp. is a publicly traded company that specializes in e-commerce and online auctions. Through inquiry with the director of compensation, the audit engagement manager learned that management's incentive compensation is based on performance related to achieving annual targets for revenue, which are set at the beginning of each year. For the current year, eligible employees will receive a bonus of 5 percent of their annual salary if annual revenues reach $5.25 billion. They will receive a bonus of 15 percent of their salary if annual revenues reach $5.5 billion, and 25 percent of their salary