Your accounting firm Nagarajan Associates, won the tender for the Super Retail Group (SRG) audit. You are the auditor in charge for this client. You are reading SRG's 2013 annual report ahead of visiting the client for the first time, with the aim of identifying the inherent risks for the client.

Extract from Annual Report 2013 Super Retail Group

Super Retail Group is one of Australasia's Top 10 corporate retailers and is listed in the

Australian Stock Exchange. Our portfolio of retail brands includes Amart Sports, BCF Boating Camping & Fishing, Goldcross Cycles, FCO Fishing Outdoors, Ray's Outdoors, Rebel and Supercheap Auto.

Started in 1972 and publicly listed in 2004, the Group has grown to become one of Australia's leading speciality retailers with more than 600 stores and annualised turnover in excess of $2 billion. With operations in Australia, New Zealand and China, Super Retail Group's success is underpinned by a continued focus on maintaining and enhancing our culture, products and core values, which are embodied by our passionate team of more than 12,000. The key drivers of performance continue to be the merchandise renewal and presentation, product brand development, engaging marketing, sourcing and supply chain execution and the passion of our team members.

Each of the larger businesses (Supercheap Auto, BCF Boating Camping /fishing, Rebel and Amart Sports) performed well; opening new stores and generating improved profits. We have completed a review of the Ray's Outdoors, FCO Fishing Camping Outdoors and Goldcross businesses and a number of business improvement initiatives have commenced to grow their sales and profits. Early results are encouraging. Associated non-recurring restructuring costs of $16.2 million have been recognised.

Last year the Group commenced a program of initiatives to develop the capabilities that our businesses will require to successfully operate as integrated multi-channel retailers. During the year the Group invested circa $53.9 million in capital expenditure and $4.1 million in operating expenses on these programs. Progress to date is on track with notable achievements during the year including the launch of Supercheap Auto loyalty program in Australia, the implementation of integrated real time information system across the Group's functions, the development of an integrated freight solution for internet and trade customers and the foundation for the integration of the Sports businesses onto the Group's Information Technology systems.

Group sales grew by 22% to $2.02 billion and profit after tax also grew by 23% to $102.7 million. Group net debt at $329.3 million was $11.7 million below the prior year reflecting the strong operating cash flow generated across the Group.

Required:

A) Identify and explain four (4) inherent risks for SRG.

B) Identify 3 accounts and an assertion for each of the accounts identified at risk of material misstatement. Explain why these accounts and assertions are at risk.