You have been assigned to the audit or Grain Crops Ltd (Grain Crops), a company that produces wheat, flour, yeast and other baker products. As with many other businesses, Grain Crops has been finding it extremely difficult to recruit and retain skilled factory staff. As a result, Grain Crops decided that staff in the most difficult-to-retain award categories will be rewarded with annual bonuses. These are calculated using a relatively complex formula that takes into account the employees length of service, award rate, seniority and estimated contribution to profit.

1. Identify the key account at risk of misstatement and the two key audit assertions at risK
2. Outline the audit procedures you would perform to gather sufficient appropriate audit evidence on each assertion.