Jiffy Corporation has seen its earnings increase steadily each quarter from 2012 (its founding) to 2016. Jiffy has struggled to provide investors with the same growth because of increasing competition. Jiffy's CEO, COO, and CFO whose wealth are heavily leveraged by Jiffy stock options are trying to focus on how to keep the company on a growth climb despite competition and the start of a global recession. Jiffy's business model is to ship its products to customers on account with payments due within 30 days after delivery. Jiffy's products are manufactured in two plants, one in Columbus, Ohio and the other in Houston, Texas. Jiffy's production is stored in 20 different warehouses located in 15 states. Many of Jiffy's smaller customers are startup companies. Surprisingly, Jiffy has a low rate of uncollectible receivables relative to others in its industry. Anderson & Cooper are Jiffy's external auditors. You are the new partner assigned to Jiffy's audit. Please respond to the following questions: 1. What are some of the red flags indicating possible management (accounting) fraud based on this client's profile? 2. Identify three types of accounting fraud that might be attempted in this situation. Explain how the fraud would be done and the conditions might foster that type of fraud. Jiffy Corporation has seen its earnings increase steadily each quarter from 2012 (its founding) to 2016. Jiffy has struggled to provide investors with the same growth because of increasing competition. Jiffy's CEO, COO, and CFO whose wealth are heavily leveraged by Jiffy stock options are trying to focus on how to keep the company on a growth climb despite competition and the start of a global recession. Jiffy's business model is to ship its products to customers on account with payments due within 30 days after delivery. Jiffy's products are manufactured in two plants, one in Columbus, Ohio and the other in Houston, Texas. Jiffy's production is stored in 20 different warehouses located in 15 states. Many of Jiffy's smaller customers are startup companies. Surprisingly, Jiffy has a low rate of uncollectible receivables relative to others in its industry. Anderson & Cooper are Jiffy's external auditors. You are the new partner assigned to Jiffy's audit. Please respond to the following questions: 1. What are some of the red flags indicating possible management (accounting) fraud based on this client's profile? 2. Identify three types of accounting fraud that might be attempted in this situation. Explain how the fraud would be done and the conditions might foster that type of fraud