Question 4 (8 marks)

You are the auditor of Superpower Ltd (SP) for the year ended 30 June 2021. SP specialises in the manufacture of whitegoods and electrical appliances. SPs draft financial information for the year to 30 June 2021 is as follows:

	2021	2020
	Draft	Actual
	$000s	$000s
Revenue	6 267	5 122
Cost of sales	(3 519)	(3 290)
Gross profit	2 748	1 832
Operating expenses	(1 718)	(958)
Profit before interest and tax	1 030	874
Cash	35	627
Trade receivables	1031	687
Inventory	581	466
Bank overdraft	306
Trade payables	466	375

Required:

Based on above information identify FOUR audit risks which would impact on the audit of SP. You also need to include the account and assertion most affected by the risks identified.