10-22 (Objective 10-2) During audit planning, an auditor obtained the following information:

1. High financial stability or profitability is threatened by economic, industry, or entity operating conditions.

2. There is an excessive pressure for management to meet high debt repayment or other debt covenant requirements.

3. Management or the board of directors personal net worth is materially threatened very hard by the entitys financial performance.

4. Significant accounting estimates involve subjective judgments or uncertainties that are very difficult to verify.

5. Board of director or audit committee oversights over financial reporting very ineffectively.

6. There is very high turnover or ineffective accounting, internal audit, or information technology staff.

7. There is very inappropriate or ineffective communication and support of the entitys values.

8. There are many known history of violations of securities laws or other laws and regulations.

9. Managements practice makes overly very aggressive or unrealistic forecasts to analysts, creditors, and other third parties.

1. Indicate whether the information indicates an increased risk for fraud.

2. If the information indicates an increased risk of fraud, indicate which fraud condition

(incentives/pressures, opportunities, or attitudes/rationalization) is indicated.