You are an audit supervisor of W Co and are currently planning the audit of your client, W Co which manufactures elevators. Its year end is 31 July 2016 and the forecast profit before tax is $15.2 million. The company undertakes continuous production in its factory, therefore at the year- end it is anticipated that work in progress will be approximately $950,000. in order to improve the manufacturing process, W placed an order in April for $720,000 of new plant and machinery; one-third of this order was received in May with the remainder expected to be delivered by the supplier in late July or early August At the beginning of the year, W purchased a patent for $1.3 million which gives them the exclusive right to manufacture specialized elevator equipment for 5 years. In order to finance this purchase, W borrowed $1.2 million from the bank which is repayable over 5 years. Describe THREE audit risks, and explain the auditor's response to each risk, in planning