[shyanne]

I would say the potential missing provision for NoClar from government investigation estimated at $240 million at $100 per customer

Possible overstated revenue as there was a claim of overcharge of customers and increase year over year for this revenue stream despite trend showings decline in market share and also inherent risk associated with subscriptions as they are recognized over time could be overstated revenue in the reporting period

Also extrapolated analytical procedure figures for 20×5 so that it is appropriately comparable to 20×4 as initial 20×5 info was for 10 months only

Risk of misstatement in consolidation if fail to eliminate intercompany balances as Oval Co and Coral Co engage in intercompany transactions and risk also inadequate disclosures for related party

Possible understated operating expenses if further evidence indicate assessment of indefinite useful life incorrect so they would failed to account for amortization however if assessment of indefinite life correct then risk that impairment review was not done and operating expenses would also be understated

There is a risk that the 18% interest together with guarantor relationship and secondment of directors conveys significant influence and therefore the investment on Bronte Co was accounted for incorrectly should have been done under equity accounting as an associate.

Further procedures should be done on payroll example increasing sample size due to inconsistencies in tax calculations the individual misstatements should be aggregated to see whether exceed materiality also by nature payroll tends to be material as opportunity for fraud is high

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