Hello, I am seeking help with the following auditing question. Thank you.

Vaughan Enterprises Ltd. Has groun from its beginnings in the steel fabrication busmess to become a multinational manufacturer and supplier of all types of packaging: mcluding metal, plastic, and paper-based It has also diversified into a range of other businesses including household appliances in Europe, the United States, and Asia. The growth m the size of the busmess occurred gradually undertheleadershlp of the last tun' CEOs, both of whom were promoted from within the business. At the beginning oflast veal, the incumbent CEO died ofa heart attack and the Board took the opportunity to appomt a new CEO from outside the company. Despite the company's growth, returns to shareholders have been stagnant durmg the last decade. The new CEO has a reputation oftuming around strugglmg businesses by makmg tough decisions. The new CEO has a five-year contract With generous bonuses for improvements in various performance indicators, including the sales to assets ratio, profit from continuing operations to net assets ratio, and share price. During the first year: the new CEO disposed of several segments ofthe business that were not profitable. Very large losses on the discontinued operations were recorded and most non current assets throughout the business were written down to recognize Impairment losses. These actions resulted in a large overall loss for the first year: although a profit from continuing operations was recorded. Durmg the second year, recorded sales the household appliance busmess m the United States mcreased dramatically: and: combined with various cost saving measures, the company made a large profit. The auditors have been made aware through various conversations with middle management that there is now an extreme focus on maximizing profit ffrough boosting sales and cuttmg costs. The attitude towards compliance with accounting standards has changed, with a greater emphasis on pleasing the CEO dian taking care to avoid breaching internal policies or external regulations The message is that the company has considerable ground to make up to catch up with other companies in both methods and results Meanwhile: the share price overthe first year and a half of the CEO's tenure has increased 650/0: and the Board has happily appred payment ofthe CEO's bonuses and granted the CEO additional options over the company's shares m recognition of the change m the company's results. Required: a. Discuss the Incentives, and opportunities to commit financial statement fraud: and the attitude and rationalizations to ustify a fraud in the above case. b. What financial statement frauds would pu suspect have occurred at Vaughan? c. What are the procedures surrounding the fraud risk assessment that should be performed and documented by the auditor?