ACCO Ltd is a large producer of organic medicinal products. The audit report for the year ended 30 June 20X8 was signed on 6 August 20X8 and along with the financial report was mailed to shareholders on 11 August 20X8. Consider the following independent events. Assume that each event is material. On 5 July, ACCO Ltd entered into a new contract to supply organic facial and i. skin treatment products to MYA, a new major department store. The contract was similar in nature to other contracts previously negotiated. (3 marks) ii. ACCO Ltd has invested significant funds in developing a new range of organically sourced skin cancer treatment ointments. On 8 July, ACCO Ltd applied for a patent for the ointment, only to discover that a competitor had lodged a similar application on 20 June. The granting of ACCO Ltd's application is now in serious doubt. (3 marks) ii. Internal audit has uncovered a major fraud at one of ACCO Ltd's branches. The fraud was perpetrated by two senior staff, acting in collusion aver a number of years. The intemal auditors released their report to management on 15 July, after a highly confidential investigation spanning several months. (3 marks)