Consider each of the following independent situations:

Hernaman Foods has been trading since 2014, specialising in organically derived health food products for the Australian domestic market. When the auditor was conducting their preliminary risk assessment, they came to the view that Hernaman had an ongoing issue with recovering accounts receivable, with many receivables balances outstanding for 3 months or more. Hernaman Foods have a provision for doubtful debts equal to 0.7% of sales. Last year's credit sales totalled $1.3m and bad debts written off were $80,000.

Dundas Ltd manufactures biscuits. Most purchases are raw materials of flour, chocolate ingredients and dried fruit. When packages of raw materials arrive at the factory, the supplier's invoice is verified against contents of the packages by whichever employee happens to be in the factory at the time. After this verification is completed, the invoice is sent to the accounts payable department for payment where the invoice is also verified against the purchase order before payment is made.

Kellaway Ltd is a brewer of non-alcoholic beer. The auditors have discovered that Kellaway's costing system does not consistently record the full cost of beer that is being brewed. The consequence of this is that the inventory of finished goods may be undervalued.

For each situation, , identify and justify the financial statement assertions that are at risk, and outline the audit procedures that can be used to obtain sufficient appropriate evidence about the assertions.