As a senior auditor at NEW AUDITORS, you are planning the final audit of a brand-new client, VTP CONSTRUCTION CO LT, for the fiscal year that ends on December 31, 2021. The business specializes in constructing buildings and offering ongoing annual maintenance services for already constructed buildings. The total assets are forecasted to be $22.3 million, and the forecast profit before tax is $13.8 million, both of which are greater than for the year ended December 31, 2020. You are required to produce the audit strategy document. The finance director of VTP CONSTRUCTION CO LT met with the audit manager, who also gave you the notes below, a copy of the November management accounts, and the preceding year's financial statements. Key notes The prior year's financial statements include $1.8 million of work in progress, which consists of ongoing maintenance services for completed buildings as well as ongoing construction of new properties. The completed property inventory is valued at $2.1 million according to the November 2021 management accounts, higher compared from a $1.4 million balance in December 2020. On December 31, a complete year-end inventory count will be performed at each of the 11 ongoing construction sites. To attend all inventory counts, there are not enough audit team resources. VTP CONSTRUCTION CO LT provides its clients with a five-year building warranty that covers any construction defects in accordance with industry standards. Customers don't need to pay any more money to get the warranty. The company has improved its building methods, and as a result, the quality of the final properties, therefore the finance director thinks this provision to be lower than it was last year. Prior to the building's completion, customers who want to buy a property must place an order and pay a 5% non-refundable deposit. Customers then contribute another 92.5% when the building is finished, with the final 2.5% being due six months later. The finance director has informed you that, while historically maintaining an allowance for receivables, it is anticipated that this can be greatly decreased. Information from management accounts According to an examination of the management accounts, the payables period in November 2021 was 56 days as opposed to 87 days in December 2020. The finance director expects that the number of days with payables in December 2021 would be even fewer than in November 2021. According to an examination of the management accounts, the payables period in November 2021 was 56 days as opposed to 87 days in December 2020. The finance director expects that the payables day in December 2021 would be even fewer than in November 2021.

Your audit team is required to: a) Identify at least 7 audit risks using provided information and relevant analytical procedure if needed, b) For each identified risk, suggest the possible impacts on audit plan. (Example: how the risks impact Sampling, what are the possible further actions of auditor, or any modification for TOCs, STOTs and STDB)