You have recently been promoted from Assistant Audit Manager to Audit Manager in December 2021. As Audit Manager, you are currently busy with the audit of Thandi Ventures (Thandi) for the year ended 30 June 2022 and have been on the audit of Thandi for several previous years. Thandi was listed on the Johannesburg Stock Exchanges (JSE) mainboard in 2015. The nature of Thandis activities demands a material investment in fixed assets. Thandi specialises in constructing roads, bridges, and buildings. In the current 2022 financial year, Thandi started with a new venture which entails the construction of fuel storage facilities. The Financial Manager informed you that Thandi is growing exceptionally well, and the sales are at an all-time high. He also mentioned that all top-level management received bonuses based on profit for the year.

Note 1: Property, Plant, and Equipment (PPE) The head office building is included in the property, plant, and equipment. Other categories of property, plant, and equipment include office equipment, machinery, and motor vehicles. All the items mentioned are used in the production, supply of services, and administration processes. Note 1.1 Head office building During the 2021 winter season, South Africa experienced heavy rainfall and floods in the West Coast district. The head office building was severely damaged. Thandi's accounting policy is to value the head office building using the revaluation model. All other other items relating to Property, Plant, and Equipment uses the cost model. The recent valuation of the head office building was performed by Mr. Derick, a recently qualified property valuer.

Describe any risks of material misstatement at assertion level by only referring to Note 1.1: Head Office Building for the year ended 30 June 2022, AND, after every risk at assertion level identified, provide the related assertion.