(a) Prominent Management Group Limited (PMG) is the holding company of a group which offers a range of management training and related services in Hong Kong. The flagship of the group is Prominent Professional Training Limited (PPT), a company which has been offering preparatory courses for professional examinations in accounting, finance, marketing, management, and computing since 1990. Prominent Management Consulting Limited (PMC) was set up in 2009 to capture the market for management training other than the preparatory courses currently offered by PPT. PMG has 40 classrooms and training venues located in 4 different locations in Hong Kong. Their training services are provided under the names of PPT and PMC which are registered trademarks in Hong Kong. Required: CBD CPA Limited ("CBD"), with 4 directors and 100 staff members, has been nominated to take up the audit of PMG and its group for 2020. State the relevant framework / standards and discuss three particular issues that CBD has to address, with possible ways to respond, before accepting such an audit nomination. (1) marke) (b) You are the engagement partner for the following clients' current year audit and both companies have a financial year end at 31 December 2019: 1. Rainy Company The notes to the financial statements disclose the following: 'Since January 2019, the company's travel luggage is guaranteed to be free from defects in materials and workmanship under normal use within a 5-year guarantee period. No provision has been recognized as the amount of the obligation cannot be measured with sufficient reliability.' Sale of travel luggage for the current year was regarded as material. Required: Suggest an appropriate auditors' report to be prepared. Explain your reasons. (5 marks) 2. Windy Company This is a manufacturer of farming equipment. Over the past 15 years, more than 85% of its revenue has been generated from selling a specialized equipment to National Farm Inc., an agricultural group based in Brazil. In March 2020, while you are carrying out the final audit for the company, you heard from the news report that creditors of National Farm have initiated legal proceedings to liquidate the group. In reply to your enquiries, your client mentioned that they should be able to increase the sales revenue from the African markets and to cut their operating costs by 20%. Required: Suggest an appropriate auditors' report to be prepared. Explain your reasons