4) You are the audit manager completing planning for your client Stark Industries Incorporated (Stark). Stark is a market leader in the technology industry aimed at designing and developing robots and robotics assistance for the home environment. Stark formed in 1998 and after a number of loss-making years is now turning a substantial profit in a very competitive market. The company spends considerable amounts on research and development and prides itself on the success rate it has with new robotic designs. Stark owns a number of very large warehouses in which inventory of small and large robotics and electronic parts are held, along with vast stores of advanced computer technology. The robots and robotic parts are manufactured in another nearby security warehouse. Products are then sold to specialized retailers of home computer and electronics, often on a consignment basis. Stark also has three customers for whom they design and manufacture large custom made robotics processes for these customers own internal uses. These are major contracts which often take nine or ten months to construct and worth millions of dollars. Stark has adopted a percentage completion method of accounting for these contracts. For the last six months, Stark has also been making sales of their major product lines to a few overseas customers. The CEO believes this could be a real growth area for the company in the near future. Stark has also recently implemented a new top-of-the-range computer inventory system to help them track inventory stocks and individual product line performance in all divisions. The new system was designed and developed by an external computer consultant company and so far, has been working well with no major errors noted. Required: a) List two (2) accounts as a result of your preliminary planning where you would concentrate audit effort for Stark. (2 marks) b) For each account: ? State the most important audit assertion and explain why you chose the particular assertion, and (4 marks) ? Recommend an audit procedure to perform, in order to gather audit evidence for that assertion. (4 marks)