Risk Assessment Neptune is a European company that manufactures high quality computer components and assembles computer parts. It has existed for some years and is part of a vertical supply chain for a well-known brand of computer hardware. Profits are coming under increasing pressure from manufacturers in the Far East and Asia with lower labour costs, and from rising raw material costs. Neptune is listed on a stock exchange. There is pressure from institutional investors for better returns in the form of dividends and the main institutional investors are considering selling a proportion of their shares in the company. The directors of Neptune are considering whether to move into new market areas. Neptune has good accounting and internal control systems. Inventory is material to the accounts, and there is a good set of permanent inventory records. No year-end inventory count is conducted. Operational compliance issues are important to Neptune as many countries have inflexible quality standards and some projects are being held up because of difficulties in obtaining approval from regulators for new components. All staff and directors of Neptune are remunerated (at least in part) on a performance-related basis, some with share options. Staff are generally highly qualified and well paid. Risk Assessment This is your first year as auditors. Your firm has very little experience in this industry. External audit costs are tightly controlled and your firm has agreed to a budget that will allow very little flexibility. Based on the above scenario, you are required to: (a) Describe the risks relating to Neptune under the headings of inherent risk, control risk and detection risk. (b) Based on the risks identified in part 'a' above, list the matters to which you will pay particular attention during the audit of Neptune and explain the work you will perform in relation to each