Impact of business risk at Simo Ltd. Simo Ltd is an Australian owned company that obtains and refurbishes second hand computer parts such as hard drives and motherboards. Recently Simo has begun using a new refurbishment technique which is claimed to be more effective and cost efficient. Simo has also made a decision to focus on the export market, and has been selling parts to several Indian companies where the parts are used in the manufacture of computers. Recently however, there have been delays in delivering the parts to India due to strike action amongst custom officials at Australian ports. The delays have angered Indian customers who have threatened to reduce the amounts owing by 15% because of lost production time. Adding further concern to Simo is that one of their customers, Calc Ltd, is claiming that the latest batch of parts they received was faulty, and are refusing to pay their account which is already 3 months overdue.

Question 1: The business risk impact and the accounts (as well as the related assertions) most likely affected by the strategic decisions made by Simo Ltd .