You have been engaged to conduct an evaluation for ABC Company. During your evaluation, you are analysing the risk management procedures of the company. You notice the absence of a formal code of conduct in the company. You also become aware of a certain lack of integrity of the management. You have observed the overstatement of revenue by bill and use of company cars for private purposes by the ABC's employees. ABC requires employees, who provide services to customers, to report accounting department about customer dissatisfaction issues. That process is seen by ABC to be crucial to the accounting function's reasonable estimate of warranty provision. In this case, there are no other controls to accomplish the same financial reporting objective. You become aware of instances where this information is not being passed on to the accounting staff. You notice that appropriate procedures for assessing and reporting new risks are not fully operational. Moreover, there are no appropriate procedures to review the reliability of purchase software used to generate sales reports.

Consider the issues that are faced by an evaluator in light of professional and ethical standards, and risk management of the ABC Company. Briefly suggest how to circumvent some of the risks in the given case