You have been assigned to the audit of Hogeye Ranch Company. In assessing audit risk for various accounts, you have gathered the following information.

Accounts receivable Accounts receivable consists of amounts due from the sale of cattle through four sales barns. All amounts are collected within one week. By state law, cattle cannot be sold without a certificate of inspection by a veterinarian, so all sales are easily accounted for by an examination of vet certificates. The number of cattle sold each month is reconciled with both vet certificates and sale barn receipts, and this control was tested with good results.

Cattle inventory The herd numbers 500 cows and bulls. Cattle records are kept on notepads by the cowboys. Deaths and births are not always recorded promptly. Ear tag identifications are sometimes lost, so that specific animals may be difficult to identify. Also, a fence adjoining a neighbor's property is in poor condition, so that the client's and the neighbor's herds are sometimes mixed.

Property and equipment Property consists mainly of land, a barn, and fencing. Equipment consists of a truck, a tractor, and minor other items. No control risk assessments tests have been performed on controls relating to property and equipment.

Required:

For the existence assertion of each account, assess each component of audit risk as high, medium, or low. Also indicate how your substantive tests for each account will be affected by your assessments.