List the two primary audit assertions, your audit team should be concerned with regards to the accounts receivable of AHL.Why?

(Assertions: Existence, completeness, ownership, valuation, and presentation)

• If the account is unpaid after the due date (30 days), the receptionist mails a reminder invoice to the customer.Accounts receivables consist of a large number of small dollar value accounts, with the exception of five large chain store customers that account for approximately 40% of the total accounts receivable.The allowance for returns typically has been 1% of the fourth-quarter sales.
• During the year, management negotiated an operating line of credit with a new financial institution.The amount authorized is limited to 75% of accounts receivable under 90 days old and 50% of inventory, to a maximum of $2 million.The loan bears interest at prime plus 3%.Under this agreement, AHL is required audited financial statements within 90 days of its fiscal year-end.