You are the auditor of Bright Pains (BOP) for the year ended 30 June 2019. BP manufactures

several different paint types in over 100 colours, for both commercial and domestic use. Paint

stock on hand is at risk of spoilage due to poor warehouse facilities.

About 35 per cent of sales are made to large chain stores, with the remainder to small retailers and

tradespeople. Chain stores often negotiate special deals on bulk orders that must be calculated

manually, resulting in frequent errors. No sales are made directly to the public. Sales are often

invoiced up to one week after related inventory is shipped to the customer.

Required

Identify and explain the accounts and financial report assertions that your believe would be

assessed as high risk.

Accounts at risk Assertion Explanation