You begin preliminary planning and as part of that planning you obtain some initial Balance Sheet data which is set out below:

Current Assets 1 Million Current Liabilities 2 Million

Fixed Assets 200 Million Non Current Liabilities 199 Million

Intangible Assets 300 Million Capital

Issued Capital 50 Million

Revaluation Reserves 250 Million

Totals 501 Million 501 Million

Intangible assets are purchased patents with about two years remaining life.

Required:

Critically analyse the above Balance Sheet, and indicate with reasons which balances and/or transaction cycles the above information will cause you concentrate your audit activities on.