XYZ Ltd. is a multinational manufacturing company specialising in automotive components. As the external auditor for XYZ Ltd., you are tasked with conducting the audit of the company's financial statements for the financial year ending December 31, 2023. Part A: Sales Revenue Assertions Assessment (20 marks) 1. Assess the financial statement assertions relevant to sales revenue for XYZ Ltd. Identify and explain at least three assertions applicable to sales revenue transactions and events (5 marks) 2. Describe the audit procedures you would undertake to gather evidence supporting each of the identified assertions. Provide specific examples of audit procedures for each assertion. (7 marks) 3. Discuss the potential risks of material misstatement associated with sales revenue for XYZ Ltd. Explain how the auditor's assessment of these risks influences the audit approach and procedures. (8 marks) Part B: Inventory Assertions Assessment (20 marks) 1. Evaluate the financial statement assertions relevant to inventory for XYZ Ltd. Identify and explain at least three assertions applicable to inventory balances. (5 marks) 2. Outline the audit procedures you would employ to gather evidence supporting each inventory assertion. Provide examples of audit procedures for each assertion. (7 marks) 3. Analyze the potential risks of material misstatement associated with inventory for XYZ Ltd. Discuss how the auditor's assessment of these risks affects the audit strategy and procedures. (8 marks)