QUESTION FOUR: $$During the "understanding the entity and its environment" stage of planning for the audit of You've Got This $($Pty$)$ Ltd you obtain the following information, inter alia, about the company.

$1.$ The company imports large quantities of inventory.

$2.$ Some of the products which You've Got This $($Pty$)$ Ltd sells have expiry dates, after which

they are not usable.

$3.$ The company sells, inter alia, chemicals.

$4.$ Inventory is stored in several warehouses around South Africa. $5.40\%$ of the company's sales are for cash.

$6.$ During the year under audit, credit terms and policies were made less stringent to boost sales.

$7.$ The company's manufacturing division leases some of its assets. $8.$ Obtaining spares for some of the manufacturing assets which the company owns, is extremely difficult which has resulted in a number of machines standing idle. $9.$ The work force at You've Got This $($Pty$)$ Ltd fluctuates quite significantly from month to month. Casual labour is brought in frequently for short periods.

Required:

Identify the financial statement assertions which will'be affected by the above information. Provide reasons.