Help me with finance, please!!!!!!!

Laduience JSC You are assigned as an audit manager in Angel Audit & Co. Angel Audit & Co is auditing Laduience JSC, a listed pharmaceutical company. Currently your team is on planning stage. The auditing period is the year ending 31 December 2014. Available information Laduience JSC is a worldwide pharmaceutical company which is focused on developing medicines. Some tablets are sold at pharmacy stores, and other are usually prescribed for use by a doctor. The advertising campaign is aggressive, however please note that such advertising is not legal for prescription drugs in some countries. The market is very competitive, meaning constant innovation is required. Therefore, Laduience JSC are always developing new products and improvements are made to existing ones. Three new drugs formulas are in the research and development stage. Regulatory requirements are very strict. For pharmaceutical industry the patent rights are highly defended and sometimes result in legal claims. Currently the company wants to extend its bank loan to 20 million EUR more. As such, the bank had requested a guarantee from the company Last month was tough for Laduience JSC as Mr. Black had made a legal claim against the company and the company asked the bank for 5 million EUR in case of Mr. Black's case is successful. Moreover, Laduience's accounting systems are out of date. 2014-Projected 2013-Actual 5000 40,000 8,100 8.000 Operating proft Operating margin Earnings per share Net cash flow Research and development cash outflow in the year Total deve opment intangible asset recognised at the ear end Total assets Gearing ratio (debt/equity) 24% 1,200) 3,000) 50,000 6.000 (2,800) 48 000 95.000 0.9 0.8 REQUIRED: Evaluate the business risks faced by the Company Discuss the ethical issues relevant to the audit firm, and recommend appropriate actions to be taken. Identify and explain three risks of material misstatement to be considered in planning the audit