1. Assessing risk for a client requires a combination of skill and good planning. Assume that you are starting the audit of a client in the food/beverage industry, an industry in which you have quite a bit of experience throughout your audit team. Assume also that there is a fraudulent scheme operating within this particular client that has misappropriated a material amount of money over the last two years. Management has so far done a good job of hiding what they are doing.

What steps can your audit team take to maximize the likelihood that you will discover this scheme during the course of your audit?