Overview BW Fishing Inc. (BWF) sells fishing supplies mainly to businesses across the country. The company has grown steadily over the last 10 years. BWF found a strategic niche in taking orders and fulfilling them immediately around the clock. As BWF's customers order supplies at unusual hours, BWF's "always open" mantra has received customer praise. This practice, along with competitive pricing, has allowed BWF to build a loyal network of customers. Although BWF has been performing well, they believe they could grow much faster with additional capital. Management thinks that the time is right to seek additional capital to accelerate their growth. To this end, they have hired an external auditor to perform an audit and issue opinions on both their internal controls and financial statements for the fiscal year ending December 31, 2021. You will act as the external auditor for this case. You are currently in the initial planning phase of the audit. Your task is to review the documentation of the process to more fully understand the flow of transactions at BWF and to better assess risk. Order-to-cash cycle and credit approval controls at BWF BWF has previously documented their typical sales process in a narrative and flowchart, as covered in the EYARC Innovation mindset - Process mining - Document the process case. These have been provided in Appendix 1 and Appendix 2, respectively, for easy reference. Carefully review this information so that you have a full understanding of the standard process that BWF's management wants all employees to follow for the order-to-cash cycle. After evaluating internal controls and performing a walk-through of BWF's order-to-cash cycle, the external auditors added the following additional information about the credit approval process at BWF that is not fully described in management's narrative in Appendix 1. For any purchase order for an amount that is less than $3,000, the sales clerk must perform select procedures to determine if a formal credit check by the sales manager is needed. These procedures include a review of the past payment history and any current balance outstanding. Upon completing these procedures, the sales clerk makes a judgment about whether to go ahead and create a picking ticket or to request a formal credit check by the sales manager because there might be some credit risk. For any purchase order for an amount greater than $3,000 or for any purchase order for an amount less than $3,000 determined by the sales clerk to need a formal credit check, a sales manager should perform the formal credit check. These procedures include a review of the past payment history, any current balance outstanding and a check of the credit agency ratings. The sales manager then approves or declines the credit. If declined, the purchase order is rejected. Sales clerks must balance competing factors in making the judgment about whether to seek the formal credit check by the sales manager for purchase orders less than $3,000. On the one hand, requesting the formal credit check takes more time and sales clerks know that customers can become frustrated if their orders take too long to be shipped. On the other hand, sales clerks can be reprimanded if they do not request the formal credit check and the customer ultimately does not pay or does not pay timely and there is evidence that they did not perform the procedures appropriately. Required 1. Review the narrative description included above and the flowcharts and the narrative in the appendices. Create a list of possible internal control risks that could exist in relation to the credit approval process