Significant risks were identified: Cash had not been reconciled for six months. There were financially material, unreconciled transactions between the mortgage company and another company owned by the shareholder. The servicing portfolio had significant risk related to losses on government insured mortgages; a third party expert stated that the risk was material, but could not quantify the maximum risk. We concluded and reported to our client that the financial statements could not be relied upon, and that management could not be relied upon. Headcount to extract the required data from the securities, and manually input into the valuation model, was reduced from approximately 20 staff, to only 5 staff.