BBQ Company Limitod ("BBQ") is principally engaged in the distribution/supply of electrical appliances. The company is an ongoing audit client. From a telephone call to the CEO prior to the commencement of the audit you have ascertained the following: (1) The company has experienced considerable staff turnover in the accounts payable department, including the Accounts Payable Manager who resigned early in the year. This has created some delays in the processing of payments. (2) The company plans to upgrade its general ledger reporting by the acquisition of a new software package. The conversion is planned to take place three months prior to the financial year end. (3) During the year a new management incentive scheme was introduced. The scheme includes a bonus which is calculated on the basis of the increase in net profit over the previous year. Required: You are ABC \& Co's audit manager-in-charge. Identify issues or conditions surrounding this potential engagement that your firm would consider as indicating a higher risk of material misstatement at the financial statement level