Rahim, a senior auditor in charge is called upon to audit a client, Mitsui Motors, which manufactures and supplies automobile parts all over the country. During the financial year 30 June 2017, the company has expanded its operations by opening new sites in a few strategic locations across the country. Mid January 2017, the management appointed an experienced chartered certified accountant to set up an internal audit department. However, by April 2017, the company reported anegative cash flow for the year with sales going down in one if its sites due to the fierce competition in the automobile industry and with the slow economic development in the country. An extensive range of spare parts is held, for which perpetual inventory records are kept, but the storekeeper conducts no continuous checking. Meanwhile, car servicing and body repairs are carried out in workshops by employed and sub-contracted service engineers where most jobs are started and finished in a day, but the invoices are not immediately prepared upon completion. In the last financial year end, the company had also faced a change in the management with the resignation of the company's CEO, Mr Tamatsu Mitsui.

Required:

a) Using the information provided, identify and explain the audit risks to be addressed when planning the final audit of Mitsui Motors for the year ended 30 June 2017.