You are the audit manager at Black Blue. a medium-sized audit firm undertaking the audit for the year ended 30 June 20X8 of High Tech Limited (High Tech), an electronic component manufacturer located in Sydney. During the planning stage of the audit you discovered that one of High Tech's major suppliers went bankrupt one month ago, causing major product shortages. To overcome the problem, Peter James, the husband of the finance director, Natalie James, provided electronic components to High Tech through his private company. There is no formal agreement in place with Peter James, however, the goods are being provided at competitive prices- You are concerned about the electronic components that Peter James' company is supplying. because his products are new to the market and you have heard some of High Tech's staff complaining that they are of poor quality The board has informed you that although sales have been strong this year. High Tech has suffered significant cash flow problems because a major debtor. Creative Limited is experiencing financial difficulties. As a result. Creative is taking well over 120 days to pay outstanding amounts. despite Creative's terms of trade being payment within 30 days. Creative makes up 40 per cent of High Tech sales and the board has been reluctant to take any action that might adversely affect those sales. As a result. High Tech has had to increase its dependency on its line of credit. and this has caused it to temporarily breach the debt to equity ratio required in its loan covenant with Big Bank Limited. a. Based on the required Considering the information provided. determine the two key account balances at risk of material misstatement. Briefly justify your answer. b. For each account balance identify the key assertion at risk. Briefly justify your answer. c. Recommend two substantive audit procedures you could perform in response to each risk identified above