Reference no: EM132668564

You travel to one of the shops where you park your car beside a Ferrari Testa Rossa in the store car park, and enter the store to find an immaculately dressed lady who runs the store on her own. The dresses sold in the store retail for several thousand dollars an item. On chatting to the lady, you discover the Ferrari is her "getting to work" car. You note that there is no cash register and are told that given the value of the dresses, only a few sales a day are processed, and these are either by EFTPOS using a single machine, or cash, which is immediately banked. Customers are given handwritten detailed receipts, which do not carry a serial number.

Required:

Problem 1: Given the above situation critically analyse the sales process and describe in detail what management assertions may be at risk relative to sales. Give full reasons for your choices. In your answer explain what management assertions are.