time. It has held a large market share for for a and has received many referrals from present of its home security syitems. It owns five large. is an optimal takeover target. jaternal Eaviromment Management style: The owner of the business, leff jobriarh, has taken as harids-off approach to manag. inc dis business. He frequently fakes extended wentiots with his family and rarely examines the books of his business. He is happy with his level of income and is not concerned with the future, belining that his company will always be profitable. Encutivess Several of the owner's relatives hold hight paitions in the company. The owner's brother, Chucky "Gombing Geruius" Johnsort, is the chicf accountant and arswers only to his brother. Jeff. He is majority omner of a local amateur sports team, which has strugh glat to sell tickets and is facing bankruptcy. - Employees. The company takes advantage of the cheap labor at the large, local university. Each sam. mer, it hirss hundreds of students to sell its products door to door. Successful students from prcvious years train the new students, and expectations and motivations are high. The temporary labor force is paid sub-ninimann wage but con earn significant consmissons on sales. Last year, some of the students earned over $80,000 in commissions in fust four months of summer sales, with some receiving queotat rewands stach as cruises and new cars. - Internal controls. In order fo facilitate quicker purchases and obtain deals from vendors, leff has left Chucky a stack of blank, presigned checks. Anyone in the purchasing department has access to these checks and can use them as needed. 1. As the auditor, list the concerns you have that may suggest fratud is occurring in the company. 2. What controls would you suggest that the company put in place to prevent potential fraud from occur: ring for each of the concerns you listed in part (1)? 3. Would you feel comfortable signing off on Flome Safety's financial -statements if it were to acquire bock-It-Up this year? Why or why not? 4. Wock-it-Up this yeart Why or why not? What are some fnctors in the audion-dient tear