Samantha, CPA, has been assigned to audit the accounts receivable and inventory ofTasty Treats Inc., a large distributor of food products (canned goods, rice, frozenfoods). Tasty Treats Inc. has a December 31 year end. Tasty Treats Inc. imports avariety of food products from various European countries to its central warehouse inHalifax and distributes the goods to various grocery chains across Canada. TastyTreats customers consist of two large national grocery chain operators as well asapproximately 200 small independent grocers. The two large national grocers makeup approximately 40% of Tasty Treats accounts receivable balance. In order tofacilitate distribution to central Canada, Tasty Treats Inc. also maintains inventory inseveral offsite warehouses. Samantha estimates that inventories and accountsreceivable make up approximately 35% and 30% of total assets, respectively.Requireda. Provide two examples of the risks of material misstatement for the inventoryand accounts receivable balances at Tasty Treats. (2 marks)b. Samantha was provided with a detailed accounts receivable subledger andan open invoice file at year end in two electronic computer files. The subledger listed each customer, the customers credit limit, the amount owing atyear end, and an aging classification (0 to 30 days, greater than 30 days old,greater than 60 days old, and greater than 90 days old). The open invoice filelisted all unpaid invoices by customer. For each invoice listed in the openinvoice file, she was provided with the customer name, the invoice number,the date of the invoice, and the amount. Provide two examples of computerassisted audit techniques that Samantha could perform on the accountsreceivable subledger file and open invoice file. Samantha has access to onlythese files. (2 marks)c. Meetings with the inventory manager reveal that a material amount ofinventory is located offsite in warehouse outlets and on consignment. Listtwo procedures that Samantha should conduct. (2 marks)