While auditing Swift Transport Ltd your audit senior found that Ellen Lee, the CFO of Swift Transport Ltd, had approved the lengthening of the useful lives of the company's trucks from ten to twelve years during the preparation of this year's financial statements. Ellen Lee had tried to make this change in previous years, but it had been rejected by the CEO Rick Fay, who was a former partner at KPMG. During the year, Rick had been replaced by Lisa Smith, whose experience is in sales and marketing, so she tended to take a more "hands-off" approach to accounting issues due to her lack of knowledge of financial reporting. The senior executives of Swift Transport Ltd are paid a bonus based on the profitability of the company. An informal conversation with Ellen Lee indicated that she intends to spend her bonus on a long overdue luxury holiday in Port Douglas with her husband to celebrate their 25^th wedding anniversary.

a)What is the key account and assertion that is most at risk of misstatement as a result of this fraud?

b)What is Ellen Lee's incentive to commit the fraud? Justify your answer.

c)Which factors give Ellen Lee the opportunity to commit the fraud? Justify your answer.

d)Which factors allow Ellen Lee to rationalise the fraud? Justify your answer.