Analyze an income statement for any potential risk factors and compliance issues with Generally Accepted Accounting Principles (GAAP).

B. Analyze the risk factors and compliance issues with GAAP on the balance sheet.

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C. Using the internal control, analyze the cash and revenue for potential risk factors.

1. What risks need to be documented?

2. How does this information compare to the company or industry averages, or the company’s past performance?

D. Explain the population and how you identified it.

E. Based on your analysis of risk, devise a sampling program for the population.

F. Choose the most preferable audit testing procedures that could be used, based on the items sampled in this situation.

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