There are four paid employees, one full-time and the remainder part-time. The full-time employee act as "procurement manager" and purchases the stock that is to be resold. She places purchase orders, receives the goods, and pays vendors. Her brother is also a part-time employee.

Checklist:

Calculate each red flag's impact on either revenues or expenses.

Calculate each red flag's impact on profitability.

Show a potential remedy or solution to address each flag.