Case 5-10 Potential Fraud at EP Sports

Please read the assigned case above and answer the questions below. Please create one multiple choice question based on the case with four answer choices. Please create quiz questions based on the major issues of the case. Please do not make true-false, discussion questions and numerical questions. Include the correct answer.

1. Who are the stakeholders in this case and what are Richard's obligations to them?
2. What are related-party transactions? Why are related-party transactions a particularly sensitive area? What do you think Richard should do with respect to audit obligations for these transactions?
3. Has fraud been committed in this case? Explain. If so, what are Richard's obligations in this regard?

Can you answer all of the questions at least 300 words please? Also, when you make multiple choice questions, can you kindly include the correct answer please? Thank you.