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Name:Class:3-5MC3/30/2017General Risk IndicatorsInstructions: Evaluate and answer the following unanswered questions regarding the risk of retaining EarthWear as an audit client. Click on the yellow boxes and select either "Yes" or "No" from the drop down menu.If you selected 'Yes' on any of the questions to the left, provide and explanation below:Are there any concerns about undue reliance being placed on the results of our work? (i.e. sale of the company, financing)NoDoes the client have any associated entities that are not audited or are being audited by firms outside of Willis and Adams?NoHave any situations been noted that bear on the integrity of management?YesEarthWear's Vice President of Finance, Don Evans, was charged with a misdemeanor involving illegal gambling on local college basketball games. Charges were dropped in return for Evans agreeing to pay a fine and perfrom community service. Is there evidence that the business is financially distressed?NoIs the client imposing on us any unreasonable scope or timing restrictions?NoIs the client's industry or business characterized by significant operating, economic, product, of other commercial risk? (Examples of such risks include: development or start-up stage, high risk industry, an industry with relatively short product lives, or product(s) of unknown or doubtful commercial feasibility.)NoAre there any pending enforcement matters or other investigations the outcome of which could adversely impact the viability or reputation of the business?NoHas the information gathering process raised concerns about: unusual or