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Question - You are the auditor of Bright Pains (BOP) for the year ended 30 June 2019. BP manufactures several different paint types in over 100 colours, for both commercial and domestic use. Paint stock on hand is at risk of spoilage due to poor warehouse facilities. About 35 per cent of sales are made to large chain stores, with the remainder to small retailers and tradespeople. Chain stores often negotiate special deals on bulk orders that must be calculated manually, resulting in frequent errors. No sales are made directly to the public. Sales are often invoiced up to one week after related inventory is shipped to the customer.
Required - Identify and explain the accounts and financial report assertions that your believe would be assessed as high risk.
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