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Question - You have identified the following five risks for your audit client:
a) Overstatements of equipment, due to the possibility that some of the entities' recorded assets have not been written down to their recoverable amount.
b) Understatement of loan payables, due to the possibility that the entity has not recorded all of its liabilities.
c) Overstatement of interest income, due to the possibility that interest income relating to the next financial year has been incorrectly recorded in the current financial year.
d) Overstatement of investment income, due to the possibility that recorded income transactions are not genuine.
e) Understatement of salary expenses, due to the possibility that the entity has missed out some of its expense transactions.
Required - Determine the key assertion at risk for each item listed above. Provide explanation to justify your answer.
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