Kingston Cooperates in the computer games industry, developing new games for sale in retail stores. Portmore Co is currently waiting for confirmation from their bank that their overdraft facility will be extended. The bank have requested a copy of the audited financial statements as soon as they are available. Montego Co has recently started selling their products overseas. Lucea Co, a manufacturer, has negotiated a contract with a new supplier for all its raw materials.

Required: For each of the scenarios above identify the business risks and state the impact, this might have on your assessment of the risk of material misstatement for the planning of the audit. (20 marks)