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It recently bought out competing and floundering time-share development. The company stock is mainly owned by Jake (51%), the other 49 % is owned by friends and family members.
Identified factors that indicate potential problems with the audit of Murphy Tymshare Inc will be discussed below.
1Q. Knechel in his book describes two types of factors, factors within the control of the auditor and those which must be evaluated by the auditor. Factors that are controlled by the auditor are expertise and staffing, and independence. Factors that should be evaluated by the auditor are integrity, reputation and image, accounting practices, financial status, profitability...
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