Joseph Rhodes has spent the last three weeks gaining an understanding of a new audit client, Amor Distribution Centre, and noted the following:

The client stores large quantities of inventory/supplies used in the construction industry. The suppliers deliver them directly, and the building compantes send their trucks to pick up the required amounts.

Amor's staff is responsible for storing the incoming deliveries in the warehouse and loading the trucks for outgoing deliveries. All movements in inventory are recorded in the inventory register.

• Every staff member has access to these inventory records, resulting in several discrepancies.
• Amcor's staff often finds inventory in the warehouse which does not exist in their inventory record. Such inventory is kept aside and disposed of every few months.
• Arcor charges the suppliers and building companies a fee for storing their inventory/supplies. The fee is based on the quantity of inventory that is managed. Wholesale discounts are offered to high volume clients.
• The accounts team has experienced a high turnover of staff and hasn't been able to maintain a current price list, resulting in numerous errors in the amount invoiced to the customers.
• For some clients, a section of the warehouse is rented out at a fixed monthly fee. The monthly revenue from these customers is often recognised as service revenue when in fact it should be rent revenue

WIth reference to case facts, identify the assertions at risk in the above case and conduct the necessary substantive tests.