a$)$ Briefly describe the range of possible audit procedures according to ISA $500,$ and explain why Inquiry may not be enough on its own.$(5$ marks$)$b$)$ You are the audit senior on the year end audit of AutoCar UK Plc$.$ with a year end of $31$March $2022.$ The client has total revenue of $300$m and a draft profit before tax figure of $10$m$.$You have been informed by the client's financial controller that due to a problem with'phantom acceleration' on a batch of cars sold in $2021/22$ some cars will have to be recalled. The client feels the issue will not be material and has therefore not included itin the draft accounts; they also feel that any disclosure might encourage more claims against the company. Based on other similar claims in the past; the client and their legal team expect that the final legal claim for this incident will not exceed $1$m$.$Required:i$)$ Based on Profit before Tax as a benchmark, calculate a draft materiality level for the audit of AutoCar UK$.(2$ marks$)$ii$)$ With reference to ISA $320$ "Materiality in Planning and Performing an Audit, discuss the audit inquiries and audit procedures that should be made in respect of the faulty vehicles, before placing any reliance on the client and their lawyers' estimation of the legal claim.$(12$ marks$)$iii$)$ Explain the role of management representation letters, in cases such as this,where other audit procedures may not be sufficient.$(6$ marks$)$