Question 3 You are the audit manager of Branch & co and are reviewing key issues identified. Board Retail Co Board's year end is 30 April 2016 and the draft financial statements show revenue of $25.5 million, receivables of $4.6 million and a profit before tax of $4.2m. A customer of Board owed an amount of $315,000 at the year end. Testing after the year end showed that no amounts had been paid to Board as they were in dispute with the company regarding a delivery issue. The finance director is sure that the issue will be resolved and has made no allowance for the receivables. Required: Discuss the issue and whether it is material to the financial statements