3 You are the audit manager of TNC Ltd and you are currently planning the audit of FOS Ltd for the year ended 31 December 2020. FOS is a new audit client specialising in manufacturing and selling plumbing equipment. One of FOS's key customers has been experiencing financial difficulties. The receivables days' ratio has doubled from previous year but he finance director does not believe that any allowance is required against this receivable. The purchasing director was dismissed in November 2020 and he has threatened to sue the company for unfair dismissal. A replacement has not yet appointed and as a result no supplier reconciliations were performed for the last two months of the year. Required: (a) Explain four audit risks, and the auditor's response to each risk in planning the audit of FOS LTD (b) Explain audit risk and the components of audit risk (8 marks)