Planning - Phase II of the Audit Process Model 6.12 Planning Procedures. Constantijn \& Nianias, Soma Orkaton Logistons (SOLs), have been hired to audit Eidola Company, a biochemical company listed on the Athens Stock Exchange. Constantijn \& Nianias is auditing the client for the first time in the cumrent year as a result of a dispute between Eidola and the previous auditor over the proper booking of sales and accounts receivable for sales of imventory that has not been delivered but has for practical purposes been completed and sold. Eidola has been grown from a small startup to a highly successful company in the industry in the past seven years, primanly as a result of many successful mergers negotiated by George Panis, the president and chairman of the board. Athough other biotech firms have had difficulty in recent years, Eidola continues to prosper, as shown by its constantly increasing eamings and growth. Bayer, the large German chemical company. has a special discount contract with them and represents 15 percent of their sales. In the last year, however, the company's profits tumed downward. His board of directors, that include many of his old university classmates, generally supports Panis. The board, which meets twice annually, recently issued a policy on corporate ethics conduct. Panis says he owes much of his success to the hiring of aggressive young executives paid relatively low salaries combined with an unusually generous profit-sharing plan. The corporate structure is very informal, as Panis does not believe than any employee should have a title or a specific job description as it "gives people airs." Panis's only corporate objective is "to make large profits so our stock price will increase and our shareholders will be happy