Company imports the raw materials for their production from overseas. Company also started importing women's clothing from the USA from January 2020. All overseas shipments to Company are invoiced and require settlement in US dollars. Furthermore, Company is required to pay for freight and insurance costs. The insurance covers the period from the day the goods are loaded onto the ship (i.e. Company assumes ownership of the goods on the day the goods are loaded onto ships in the various ports from where the products/raw materials are shipped) until the day it arrives in Company 's warehouses in Australia. All shipments arrive in Australia within a 26-day period after loading onto a ship. Overseas suppliers' accounts are settled 30 days after the date of shipment. Overseas accounts payable represent 75% of the accounts payable balance. All the records relating to the purchase, inventory, and accounts payable are maintained in the computer system. One of your audit staff has reported that foreign accounts payable is at risk of material misstatement

a) Outline two key reasons why accounts payable is at risk of material misstatement.

b) For each key reason outlined in(a), identify and explain the assertion most at risk.

c) For each assertion at risk outlined in (b), describe one substantive test of detail that is specifically responsive to the risk of material misstatement.