The entity's revenue projections align with historical trends.

The entity's revenue forecasts have not significantly varied from actual results over the past few years.

The entity is operating in a depressed industry that has recently experienced market declines.

The entity has gained market share in each of the last three years.

The revenue growth rates used in the projections are above the growth rates predicted by the industry analysts.

The entity has a significant number of multi$-$year contracts with its customers.

The current$-$year reserve as a percentage of gross receivables is consistent with prior years, although there was an increase in revenues, gross receivables, and the related reserve.

Bad debt expense has remained consistent as a percentage of gross revenue over the past several years.

Retrospective review of receivable collections indicates that management's reserves have historically been accurate.

Economic conditions have been fairly stable and are predicted to remain stable.

Revenues increased substantially year over year as a result of the introduction of a new product line.

The new product line is marketed toward customers in the restaurant industry, in which the entity does not currently have an established customer base.

The restaurant industry generally has a higher rate of business failure than other customer segments.

The entity's collections experience has primarily been with customers in the retail and professional services industries; the entity has very little collections experience with the new product line, given the recent launch.

Approved sales terms have not changed year to year $($e$.$g$.,$ sales personnel may offer an extension of credit of up to $100$ percent of the purchase price consistent with prior year, creditworthiness is determined in the same manner, payment terms are consistent with prior year$).$

Sales of the new product line are more frequently $100$ percent financed versus sales of the existing product lines, resulting in an increase in gross receivables.

The budget used by management for operational purposes is reasonable and indicates operating income and positive cash flows for the Asset Group.

Because they are in a distressed industry, the entity and the Asset Group have experienced declines in financial results in recent years.

Management communicated to investors an intention to shift its operating strategy to improve cash flows and is exploring options and opportunities to achieve this goal.

Board meeting minutes indicate that a number of strategic options and opportunities have been discussed, including the potential sale of the Asset Group, the potential sale of other assets, and refinancing debt.

The entity projects that it will meet its financing and liquidity needs without having to sell the Asset Group or any other assets.

Management represented to the engagement team that it does not believe it is more likely than not that the Asset Group will be sold in the near future.

Required:

For each case above:

Identify and summarize the corroborative and contradictory audit evidence in each scenario.