1. A An auditor has been auditing the financial statements of Crown Apartments in Salalah that has 30 Flats, daily rent for each flat is OMR 12. Rents are increased by 50% during Khareef, which runs for 60 days in a year. Apartments are closed for 15 days every year, during normal days (non- Khareef period), for maintenance. Assume that the occupancy rate for all flats is 50%during normal days and 100% during Khareef. Assuming 365 days in the year, what is the expected revenues from the apartments? If the financial statements of the apartments show that the revenues are RO121,540, Is there any possible misstatement in revenues? If so, to what extent? Show your workings. B. Ms. Maba, as an auditor for Al Sana traders has found that the sales were reported in the Income statement as RO 102,400. Since he is skeptical about the sales assertion and in order to verify and obtain sufficient appropriate audit evidence, he noted down the following information from the accounting records. Al Sana Traders sold 85% of goods on credit during the year. The opening Balance of the Accounts Receivables were OMR 7,870 and the Closing Balance was OMR 23,408. Al Sana Traders have written off OMR 2,784 Bad debts during the year and given a cash discount of OMR 1,265 for the customers for earlier payment. Cash collected from Accounts receivables during the year was OMR 67,453. Ms. Maba finds that there is no material misstatement in the Sales. Do you agree with Ms. Maba? Show necessary working for your