Lucas Mining company locates in australia and operates an open-pit mine and mines magnetite iron ore, a mineral that used in the production of steel and export to many countries in the world. Due to COVID-19, it is not clear with respect to: COVID-19 related supply chain issues and COVID-19 related manufacturing issues

This is the information about revenue recognition of Lucas Mining group pty ltd:

Sales revenue is recognised on individual sales when control transfers to the customer. Generally, control passes, and sales revenue is recognised, when the iron ore is delivered to the ship on which it will be transported. However, there may be circumstances when judgement is required when recognising revenue. In such circumstances, a five-step process is followed: identify the contract with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations; and recognise the revenue when the entity satisfies the performance obligations. In a limited amount of sales, the company sells product where the company is responsible for shipping the iron ore to the customer (termed Cost and Freight). In such circumstances the company has determined that the freight service is a separate performance obligation from the ore sale performance obligation. Therefore, the revenue for shipping services is recognised as the company satisfies this performance obligation over time rather than at the point when the iron ore is transferred to the ship. The company has a right to payment at the point that control of iron ore product passes to the customer.

Additionally, this is the income statement:

From the information that you have available to you about this Mining company, assess the inherent risk for operating sales/revenue (high, medium or low).

and Justify your assessment of the inherent risk level for operating sales/revenue (assertions: Occurence, Accurancy, cut-off) (Note: especially in the COVID-19 nowadays) (about 100w). Thank you!

P/S: I saw that the revenue in 2020 increase significantly while the company may have the risk with COVID-19 supply chain issue. Im not sure whether that information is helful, just in case you forget to look at the revenue figure

Consolidated Statement of Comprehensive Income For the year ended 31 December 2020 Revenue from operations Cost of sales Gross profit 2020 $000 526,324 (295,506) 230,818 2019 $000 368,601 (286,072) 82,529 2018 $000 368,204 (238,938) 129,266 Administration expenses Operating profit before other income (5,218) 225,600 15,949) 76,580 (5,177) 124,089 Exploration and evaluation expenditure Other income Operating profit before finance costs (1,414) 386 224,572 (1,235 174 75,519 (822) 281 123,548 Finance income Finance expenses Profit before income tax expense Income tax expense Profit for the year 5,344 (21,037) 208 879 (5,693) 203,186 7,991 (1,884) 81,626 (4,292) 77,334 13,648 (1,868) 135,328 (22,390) 112,938 203,186 77,334 112,938 Total comprehensive (loss]/income for the year Total comprehensive income/loss) for the period attributable to: Owners of the parent Non Controlling Interests 204,179 (993) 203,186 77,661 (327) 77,334 112,938 (387) 112,551 Total comprehensive (loss/income attributable to: Owners of the parent 203 186 203,186 77,334 77,334 112,551 112,551 Consolidated Statement of Comprehensive Income For the year ended 31 December 2020 Revenue from operations Cost of sales Gross profit 2020 $000 526,324 (295,506) 230,818 2019 $000 368,601 (286,072) 82,529 2018 $000 368,204 (238,938) 129,266 Administration expenses Operating profit before other income (5,218) 225,600 15,949) 76,580 (5,177) 124,089 Exploration and evaluation expenditure Other income Operating profit before finance costs (1,414) 386 224,572 (1,235 174 75,519 (822) 281 123,548 Finance income Finance expenses Profit before income tax expense Income tax expense Profit for the year 5,344 (21,037) 208 879 (5,693) 203,186 7,991 (1,884) 81,626 (4,292) 77,334 13,648 (1,868) 135,328 (22,390) 112,938 203,186 77,334 112,938 Total comprehensive (loss]/income for the year Total comprehensive income/loss) for the period attributable to: Owners of the parent Non Controlling Interests 204,179 (993) 203,186 77,661 (327) 77,334 112,938 (387) 112,551 Total comprehensive (loss/income attributable to: Owners of the parent 203 186 203,186 77,334 77,334 112,551 112,551