You have just completed the "understanding the entity and its environment" stage of the planning of a new client Bull Dog (Pty) Ltd. You have established the following: - The financial accountant and financial director are not co-operative with the external auditors - A significant portion of the company's operational equipment is in remote and isolated areas and in neighbouring countries. - The company is involved in long term contracts which can last up to five years - All journal entries are put through by the financial director. He is the only person with access to the "journal entry module" on the company's local area network. 6 | Page YOU ARE REQUIRED TO: (a) Assess the risk of material misstatement at financial statement level. Give reasons. (6) (b) Assess the risk of material misstatement at assertion level. Indicate which assertions are effected?