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. Jiffys 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. Jiffys business model is to ship its products to customers on account with payments due within 30 days after delivery. Jiffys products are manufactured in two plants, one in Columbus, Ohio and the other in Houston, Texas. Jiffys production is stored in 20 different warehouses located in 15 states. Many of Jiffys smaller customers are startup companies. Surprisingly, Jiffy has a low rate of uncollectible receivables relative to others in its industry. Anderson & Cooper are Jiffys external auditors. You are the new partner assigned to Jiffys audit. Please respond to the following questions: 1. What are some of the red flags indicating possible management (accounting) fraud based on this clients 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.