Question 1 Montgomery Glass (MG) is a retailer of wood windows. You, a CPA, are the audit manager on the MG file and are working on the audit plan the sales and cost of sales (COS) sections. . You have compiled the following information on some of the transactions and events occurring at MG during the year: Your preliminary analysis of the gross profit margin determined that the gross profit percentage increased from 50% in the prior year to 55% this year. MG's sales system is mostly automated. Occasionally, it is necessary to manually calculate and prepare invoices for large-volume sales to hotel chains using an Excel invoice template. MG made inventory purchases from three vendors in U.S. dollars. The U.S. dollar has increased in value over the last 30 days and the inventory items have already been expensed through COS. MG made a large online sale before year end. The shipping department has struggled with the volume of online sales, and the shipment of many of the orders was delayed. . Required: Identify the risks for sales and cost of sales at MG and the related assertions. Suggest audit procedures to address the risks. Example Assertion Procedure Risk As the gross profit percentage has increased during the year, there is a risk that sales are overstated, and/or COS is understated Occurrence of sales and completeness of cos .