1. Identify what you consider to be the risk factors which will impact on the audit of receivables and inventories.

2. What other risk factors will impact on the audit.

3. Set the levels of materiality for your audit plan for the Statement of Financial Position and the Statement of Financial Performance. Justify the selection of these levels.

4. In respect of the following draft a memo to the audit partner setting out the audit approach to be adopted:

1. Receivables

2. Inventory

3. Land and Buildings current value for disclosure.