3. The difficulty of auditing transactions and account balances.

to the issues
related to revenue recognition discussed previously,the allowance for
uncollectible accounts can be difficult to audit because of the subjectivity
involved in determining its proper value
4. Misstatements detected in prior audits. the presence of misstatements in
previous audits is a good indicator that misstatements are likely to be present
during the current audit. With a continuing engagement, the auditor