(a) During the audit of the following companies' financial statements for the year ended 31 December 2020 several matters have been noted as shown below. (i) Gordon Brown Co's Profit before tax was Rs7 million and a statement of financial position total of Rs23 million. Gordon Brown owns a number of its retail premises, which it revalues annually. This year several of its shops rose sharply in value due to inflated property prices in their locality. Gordon Brown does not revalue its factory premises, which are held in the statement of financial position at Rs 2.7 million. [8marks] (ii) Bentley Ltd profit before tax was Rs 200 million. Bentley's computerised wages program is backed up daily. However for a period of three months the wages records and the back-ups have been corrupted, and therefore could not be accessed. Wages and salaries for these three months was Rs32 million. marks] [8 (iii) Acquarelle Co's Accounts Payable figure included a sum of Rs 60.2 million in respect of leaves which was wrongly computed, resulting in an overprovision of Rs 18.7 million. A sum of Rs 4.3 million due to a supplier which was included in the Accounts Payable where the accuracy of the figure could not be ascertained. Rs 16.6 million relating to Administrative Expenses was not included under accruals in the current financial year Utilities bills amounting some Rs 4.5 million were wrongly accrued. The Statement of Cash Flow was not prepared in line with accounting standard: The figure of Rs 3.6 million relating to procurement of assets was not recorded. Increase in Inventories (Rs0.6 million), increase in Accounts Receivable (Rs 7.1 million) and decrease in Accounts Payable (Rs 18.5 million) were wrongly calculated. Movement in Short Term Deposits (Rs 4.5 million) was accounted for in both Working Capital Changes and Investing Activities marks] [9 Required: Briefly give your views on each of the above situations and state what type of auditor's report should be issued and explain your choice. The mark allocation 3 is shown against each of the three issues above. You should not reproduce the entire audit report. Only mention appropriate extracts which are relevant. [Total 25 marks]