The primary audit risks factors that I have identified are the following:
• The integrity of management and the “tone at the top” of the company was the most significant risk factor. Brian Fox was both the CEO and CFO, who had previously been banned from serving as a corporate officer or director for 18 months by a Canadian regulatory agency.
• The industry itself is a huge audit risk factor. Oil and gas prices are constantly changing due to economic and environmental reasons. Due to these economic and environmental reasons, overall the oil & gas industry stock prices are extremely volatile. The volatility