Forecast Actual Actual Actual 30/9/2020 28/2/2020 30/9/2019 30/9/2018 R'000 R'000 R'000 R'000 (12 (12 months) (5 months) (12 months) months) Sales 40,000 18,000 56,000 67,000 Gross Profit 4,000 1,800 5,600 6,700 Net Profit (56) 14 1,367 3,091 Current Assets: Current Liabilities 1:1 1:1.2 1:0.75 1:0.65 Share capital and reserves 400 400 400 400 Average salary 4,690 4,259 4,011 3,678 You have performed preliminary tests of controls on the sales and receivables cycle and have concluded that you can rely on the internal controls. The client informed you that the audited financial statements are required by 15 November 2020 as the company's borrowing facility is reviewed on an annual basis and that the bank requires the audited financial statements for this purpose. REQUIRED: 1.1) List all the audit risks affecting the audit. (12 marks) 1.2) Calculate the planning materiality. Provide detailed explanations regarding how you arrived at your answer. (8 marks)