b) Using the information provided and the ratios calculated, identify and describe FIVE audit risks and explain the auditors response to each risk in planning the audit of Hoses Construction Co.

\begin{tabular}{|l|l|l|} \hline & Draft2021($M) & Actual 2020(SM) \\ \hline Revenue & 13.5 & 16.0 \\ \hline Cost of sales & (8.0) & (9.0) \\ \hline Gross profit & 5.5 & 7.0 \\ \hline Operating expenses & (5.0) & (5.1) \\ \hline Profit before interest and tax & 0.5 & 1.9 \\ \hline Inventory & 2.2 & 1.6 \\ \hline Receivables & 3.2 & 2.0 \\ \hline Cash & 0.7 & 2.0 \\ \hline Trade payables & 1.7 & 1.5 \\ \hline Loan & 1.0 & 1 \\ \hline \end{tabular}