Sally Jones owns Sallys Shoes, a successful one-store shoe store, which she would like to expand to two locations; but the bank has asked for an independent audit before it will provide financing. Sally hires her brother-in-law, George Jones, to perform the audit. George has experience in auditing non-profit organizations and plans to perform the audit similar to his other audits. After completing all the steps of the audit process, he issues an unqualified opinion indicating that he is certain that the company's financial statements contain no misstatements.

Discuss three major, potential problems with Georges audit of Sally's Shoes.