Amna Co manufactures motor vehicle components and its year end was 30 June 2018. You are an audit supervisor of Peppermint & Co and the final audit is due to commence shortly. Total assets are $43-2m and profit before tax is $7-2m. The following matters have been brought to your attention: Trade receivables Amna Co's trade receivables ledger is comprised of a large number of customers. In previous years, the audit team has undertaken a positive trade receivables circularisation to confirm year-end balances. However, the customer response rate has historically been low and so alternative audit procedures have been undertaken. A decision has been made that for the current year audit a circularisation will not be performed. The year-end trade receivables balance is $3.9m (2017: $2.8m) and the allowance for trade receivables is $410,000 (2017: $300,000) Bank balances The bank and cash figure included in Amna Co's draft financial statements is comprised of a number of bank account balances: an overdraft of $5-Im which is the company's main current account and $0-2m relating to several savings accounts. The finance director has informed the audit manager that all accounts have been reconciled as at the year end. The overdraft of $5-1m has increased significantly since the prior year (2017: 51-2m). The directors have informed you that the overdraft facility, which the company requires in order to operate on a daily basis, is due for renewal in October 2018 and that they are confidentit will be renewed Required: (a) Describe substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to Amna Co's trade receivables 17 marks) (b) Describe substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to Amna Co's bank balances. 7 marks) (c) Describe the audit procedures the auditor should perform in assessing whether or not Amna Co is a going concern. (6 marks) During the final audit, the finance director has informed the audit team that Amna Co's bankers will not make adecision on the renewal of the overdraft facility until after the auditor's report is signed. The audit engagement partner is satisfied that the use of the going concern basis is appropriate Page 8 of 9 The directors have agreed to include some brief going concern disclosures in the draft financial statements and the audit team still have to assess the adequacy of these disclosures. Required: (d) Discuss the issue and describe the impact on the auditor's report of Amna Co of adequate AND inadequate going concern disclosure