Durable Furniture Ltd (DFL) is an Australian listed company that manufactures luxury designer furniture used in the home design market. It supplies its products directly to interior decorators serving the luxury end of the housing market. Its largest customer (accounting for 40% of DFL sales) is Original Designs (OD), a publicly listed company. OD operates across Australia and has 30% of the market share.

All products manufactured for OD are made to order, according to the specifications of architectural plans.

You work for David & Associates, a Chartered Accounting firm who are the auditors of DFL. In April 2022, OD went into administration, owing millions of dollars to the bank. OD was not able to secure bank funding in order to continue its operations.

REQUIRED: In respect of the audit of DFL for the year ending 30 June 2022. a)Identify two (2) key account balances at risk in relation to the collapse of OD. (2 marks) b)Identify the key assertion at risk for the account balances identified in (a). (2 marks) c)For each assertion identified in (b) above, provide an explanation as to why it is at risk. (4 marks)