Risk of Material Misstatement (Inherent Risk) at the Financial Report Level

From your Understanding of the Client - Abilene Oil and Gas Ltd, identify one(1) specific account balance (not account classifications!) that you consider at significant risk of material misstatement. For your chosen account balance:

a) Explain why the account balance is at significant risk of material misstatement

b)Explain one, key assertion at risk of not being valid

c)Detail relevant substantive audit procedure to address the assertion at risk as identified in b) above

d)Detail relevant practical internal control that would mitigate the risk in relation to the assertion at risk as identified in b) above.

Company name: Abilene Oil and Gas Ltd

ASX Code: ABL

Sector: Energy