Consider each of the listed items and describe how they affect the risk of a material misstatement.

1. Management has a poor reputation in the business community over the integrity of recent decisions.
2. Repairs and maintenance accounts were misstated in previous audits.
3. Management lacks experience.
4. The entity is facing a cash flow problem.
5. The inventory consists of a range of expensive jewellery.
6. Taxations calculations are always complex.
7. The entity is a computer manufacturer.
8. Managements rewards are heavily dependent on financial results.
9. Provisions are material liability.
10. The entity has just opened a major retail outlet in the United states.