Use ratios to perform analytical procedures on the accounts receivable and inventory balances. For any risks identified in your analysis, recommend audit procedures to address these risks at year-end.

Relevant financial information has been summarized (in millions) as follows: June 30, 2020 (Qtr 2) Sept. 30, 2019 (Qtr 3) $ 3.8 $2.9 $25.0 $22.0 As at Accounts receivable Inventory2 Sept. 30, 2020 (Qtr 3) $3.6 $24.0 For the quarter ending Sept. 30, 2020 Sales $150.0 Cost of sales $90.0 Note 1: Accounts receivable is all related to commercial clients. Sept. 30, 2019 $163.0 $ 99.4 June 30, 2019 (Qtr 2) $ 3.9 $26.0 Note 2: Inventory balance is made up of wine, beer, and spirits. Note 3: 20% of sales are on credit. Only commercial customers are eligible to make purchases on account. Payment is due within 30 days for all customers.