Party Cruises is a new client of MMM Partners. Party Cruises is a low-cost cruise ship operator, travelling between Australia and five countries in South-East Asia. The planning for the first audit is underway. The auditors have become aware that police in two countries are investigating several Party Cruises employees for stealing food and other supplies from the ships' kitchens and selling it at local markets. The police have charged ten cabin stewards of Party Cruises with theft and fraud.

Required

1. What account balances are at risk? Explain.
2. What key assertions for the above accounts are likely to be affected?