Golden Touch Ltd is a national fashion retail chain with stores located throughout Australia. The major shareholders of Golden Touch are the Campbell siblings Amos, Samantha and Terry. The remaining minority shares are held by independent third parties. Both Samantha and Amos are employees of Golden Touch, but only Amos, who is the CEO, is on the board. All other board members are independent of the family. Golden Touch specialises in expensive womens swimwear and resort-wear for summer use only, and designs its garments in Australia and manufactures them in China from Italian-sourced fabrics. The only exception is the material for Golden Touchs resort-wear, which is purchased at commercial rates from Kylie Campbell, the fourth Campbell sibling, through her company Elite Fabrics Pty Ltd. The details of this arrangement are contained in a note to the financial report. Samantha Campbell is in charge of purchases for the year ended 30 June 2018 and renegotiated Golden Touchs contract with Elite Fabrics, so that Golden Touch pays cash on delivery for all materials purchased from Elite Fabrics, instead of the industry standard of 30 days

No one outside of the purchasing department is aware of the renegotiation. Golden Touch owns 75 per cent of its manufacturing operations in China, with the remaining 25 per cent being owned by a Chinese company, Fung Ltd. Amos Campbells wife is a clothing designer and has her fashion line manufactured in Golden Touchs Chinese plant at no charge, provided members of the Campbell family are supplied with garments free of charge. Golden Touch simply writes off the manufacturing costs incurred by Amos wife as a bad debt. Fung is not aware of this arrangement.

Required: Outline the issues in relation to the related-party transactions above that may increase the risk of material misstatement in the financial statements or prevent fair presentation of the financial report