Alice is an audit senior for the accounting firm of Wong and Partners. In Alice's planning of the audit of Lincoln Traders Ltd for the year ended 30 June 2015, she asked to review the minutes of board of directors meetings for the year to date. From her review, she noted the following information.

Required

Discuss the effect that each of the five noted items in the minutes of the board of directors meeting will have on specific aspects of the audit plan.

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Wong and Partners P-7 Lincoln Prepared by: Alice Traders Ltd Date: 28/5/15 Planning Notes from board of directors meetings for year to May 2015: 16/8/14 17/10/14 15/12/14 16/2/15 17/5/15 The board agreed to revalue land and buildings in its financial statements in accordance with a property valuation recently undertaken at the company's request. The effect would be to increase their value by 50%. The company took over one of its major customers during the year. This was not expected to alter its trading relationship. It was agreed that a new bonus scheme' would be implemented. This scheme would award directors a bonus of a percentage of the profits for this year if they could exceed last year's profit figure by 20%. It was agreed that construction should begin on a new factory for processing tuna. A construction contract was approved and it was expected the work on the new factory would commence before the end of March, at least three months before the end of the financial year. The board agreed to make a large loan to one of the company's subsidiaries in Fiji one month before the end of the financial year. The loan did not have any security and no interest was charged.