Question: Carmen is a senior auditor of public accounting firm. In her planning to the audit of a client, Luxury furniture Manufacturing company, Carmen observed the following:

Situation observed	Account at risk	Assertion at risk
Received depertment does not count raw materials purchased during busy time
There are several mistakes in recording sales transactions in the correct dates
The warehouse has some unsold finished goods that was produced several years ago
court notified luxury furniture that one of its major customers has become bankrupt. The outstanding balance of that customer represents 12% of the total asserts of luxury furniture.

Subject name: Auditing and assu