DISCUSSION QUESTIONS AND PROBLEMS TIVE 10-2) During audit planning, an auditor obtained the followiny inancial stability or profitability is threatened by economk, Industry, or enity information 1. High operating conditions , There is an excessive pressure for management to meet high debt repayment or other 3, Management or the board o directors personal net worth is materially threatened A Significant accounting estimates irvolve subjective judgments or uncertainties that 5. Board of director or audit committee oversights over financial reporting very debt covenant requirements very hard by the entity's financial performance. are very difficult to verify ineffectively 6 There is very high turnover or ineffective accounting, internal audit, or information technology staff 7. There is very inappropriate or inefective communication and support of the entity's & There are many known history of violations of securities laws or other laws and regulations. 9. Management's practice makes overly very aggressive or unrealistic forecasts to analysts, creditors, and other third parties. a. Indicate whether the information indicates an increased risk for fraud. h If the information indicates an increased risk of fraud, indicate which fraud condition Required incentives/pressures, opportunities, or attitudes/rationalization) is indicated