(b) Using the information provided, state the financial statement risks arising and justify an appropriate audit
approach for Indigo Co for the year ending 31 December 2005. (14 marks)
(b) Using the information provided, state the financial statement risks arising and justify an appropriate audit
approach for Indigo Co for the year ending 31 December 2005. (14 marks)
(b) Financial statement risksAssets■ There is a very high risk that inventory could be materially overstated in the balance sheet (thereby overstating profit)because:? there is a high volume of metals (hence material);? valuable metals are made more porta
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