You are the auditor of Brand Boy Ltd (BB). BB manufactures mini hi-fi systems. BB’s draft financial information for the year to 30 June 2021 is as follows:

	2021	2020
	Draft	Actual
	$000s	$000s
Revenue	5 267	4 122
Cost of sales	(2 519)	(2 290)
Gross profit	2 748	1 832
Operating expenses	(1 718)	(958)
Profit before interest and tax	1 030	874
Cash	—	527
Trade receivables	931	587
Inventory	481	366
Bank overdraft	206	—
Trade payables	366	275

 

Required:

Based on above information identify four (4) audit risks which would impact on the audit of BB. You also need to include the account and assertion most affected by the risks identified.