Based on this information, respond to the following questions.

1. What features of this case should have indicated to the auditor a potentially heightened risk of fraudulent financial reporting?
2. Using the previous disclosures as a starting point, brainstorm about the challenges regarding internal controls that a company may face in doing business internationally.
3. The company had disclosed its planned remediation efforts for 2004. How might the auditor have used that information during the 2005 audit in terms of audit planning?
4. Considering potential analytical procedures relevant to the revenue cycle that were discussed in this chapter, identify what types of analytics might be applied in 2005 to provide evidence that the problems detected in 2004 have been remedied.
5. Considering potential substantive tests of revenue that were discussed in this chapter, identify procedures that might be applied in 2005 to provide evidence that the problems detected in 2004 have been remedied.