An entity’s risk assessment for financial reporting purposes is its identification, analysis, and management of risks pertaining to financial statement preparation. Accordingly, risk assessment may consider the possibility of executed transactions that remain unrecorded.

The following internal and external events and circumstances may be relevant to the risk of preparing financial statements that are not in conformity with generally accepted accounting principles [or another comprehensive basis of accounting]:

• Changes in operating environment, including competitive pressures
• New personnel that have a different perspective on internal CONTROL
• Rapid growth that can result in a breakdown in controls
• New technology in information systems and production PROCESSES
• New lines, products, or ACTIVITIES
• Corporate restructuring that MIGHT result in changes in SUPERVISION and segregation of job functions
• Foreign operations
• Accounting pronouncements requiring adoption of new accounting principles

An entity’s risk assessment for financial reporting purposes is its identification, analysis, and management of risks pertaining to financial statement preparation. Accordingly, risk assessment may consider the possibility of executed transactions that remain unrecorded.

The following internal and external events and circumstances may be relevant to the risk of preparing financial statements that are not in conformity with generally accepted accounting principles [or another comprehensive basis of accounting]: