A manufacturer of components used in the electrical distribution industry, has factories across Canada to service municipal and provincial electricity distributors. You have been engaged for the September 30, 2021, financial statement audit of the manufacturer. You are planning the audit. During the past six months the manufacturer made significant changes to its manufacturing processes and has purchased equipment. Because of the changes, the manufacturer has a lot of equipment that is no longer used. The purchase requisitions for the new equipment was authorized by the production managers. You have also learned the manufacturer made cost savings changes in its purchasing department. Because two staff were laid off the monthly supplier statement reconciliations are no longer completed. In addition, the purchasing manager has given the remaining purchasing staff access to purchase ledger master file so that as time allows updates can be completed.