You are an audit senior at KPMP & Co and you are currently responsible for the audit of Blueberry Pty Ltd (Blueberry). Blueberry develops and manufactures smart mobile phones and distributes these items to wholesale customers. Its draft profit before tax is $12.8 million, total assets are $74.2 million and intangible assets are $6 million for the financial year ended 30 June 2022. The final audit is due to commence shortly and the following matters have been brought to your attention: - Cost of inventory is made up of the purchase price of raw materials, labour, production, direct overheads and overheads from administration department. Inventory is held in the warehouses and Blueberry plans to conduct full inventory counts at the warehouses on 2 July 2022. - In May 2022, Blueberrys financial accountant, Peter, was dismissed. As a result of the dismissal, the purchase and accounts payable accounts have not been reconciled. Peter took legal action for unfair dismissal on 1 June 2022. - Blueberrys board comprised five directors. They are each entitled to a 1% bonus based on the draft profit before tax. Details of the bonus entitlement are included in the directors employment contracts. The bonus which related to the 2022 financial year ended 30 June, was paid to each director in July 2022 and the total costs were accrued and recognised within the salaries and wages expenses account for the year ended 30 June 2022. Required: i) Indicate and justify the Three (3) key account balances and assertions at risk of material misstatement. (9 Marks) ii) Describe one substantive audit procedure to obtain sufficient and appropriate audit evidence in relation to the affected account balances / assertions (3 Marks) Set out your answer as follows: 1. Account balance + Assertion with short explanation+ substantive audit procedure 2. Account balance + Assertion with short explanation+ substantive audit procedure 3. Account balance + Assertion with short explanation+ substantive audit procedure