. 1. Analytical Review Procedures : 20 marks Saunders Technologies Ltd.'s (Saunders) balance date is 30 March. Here is information relating to the expected financial information for 2021. In 2020, the actual cash balance was $527,000 but due to changes in circumstances, the company expects to have a bank overdraft of $206,000 in 2021. The Trade Receivables are expected to increase from $580,000 to $899,000 over this period while the Inventory account will increase by $95,000 from a balance of $380,000 in 2020. The Trade payables will also increase from $274,000 to $370,000 in 2021. In terms of Revenue, Saunders expects an increase of $1,236,000 on their current revenue of $4,120,000. The cost of sales will also increase from $2,290,000 to $2,519,000. It is expected that the operating expenses will change from $950,000 in 2020 to $1,729,000 in 2021. Question 1.11: (3 marks) Explain the audit risk related to the figures in Questions 1.9 and 1.10. (This is a short written answer with a maximum of 70 words). Question 1.12: (3 marks) Explain the audit approach that the auditors should take when auditing Saunders Technologies Ltd. (This is a short written answer with a maximum of 70 words)