Question 1 (12 marks) You are assigned to the audit of West-end Pty Limited, a large proprietary company which sells outdoor furniture and appliances. You are currently planning the audit for the year ending 30 June 2015 and have the following information: West-end has four stores located throughout the Canberra area. The main warehouse is located in Gordon and other stores receive their products from the main warehouse when the inventory reaches the minimum number. The accounting department is also located in the Gordon branch. West-end deals with around 25 suppliers including a few in India. Terms of trade vary from supplier to supplier, and under some consignment agreements with a few suppliers, goods are supplied on a sale or return basis and the payment is made only when the goods have been sold. Cash from sales is deposited daily to branches of the Commonwealth Bank closest to the stores. Bank accounts are reconciled monthly, and from time to time there were some unreconciled items although these items are not very significant. During the market boom, West-end also invested in the share market and due to the Global Financial Crisis, share prices dropped. West-end still holds the shares, hoping the share price may go up with the recovery of the U.S. economy. Required: (0) Identify three (3) accounts at risk of material misstatement. (3 marks) (ii) Identify one (1) audit assertion at risk for each account, and explain why it is at risk. (6 marks) (iii) Detail one (1) audit procedure you would perform to gather audit evidence in relation to the assertion you identified in (ii).