Below are ten independent risk factors:

• 1. The client lacks sufficient working capital to continue operations.
• 2. The client fails to detect employee theft of inventory from the warehouse because there are no restrictions on warehouse access and the client does not reconcile inventory on hand to recorded amounts on a timely basis.
• 3. The company is publicly traded.
• 4. The auditor has identified numerous material misstatements during prior year audit engagements.
• 5. The assigned staff on the audit engagement lack the necessary skills to identify actual errors in an account balance when examining audit evidence accumulated.
• 6. The client is one of the industry