Assume that you are a financial auditor who works in one of the public accountant firm. You are assigned by your partner to audit a client. This client listed in stock market which uses IFRS as the accounting standard and is a distribution company which distributes home appliances. Clients sell goods to retail stores home appliances. The following are the things that encountered when auditing that client:

a) The client has 10 operational vehicles purchased five years ago, amounting to RM 200 million, the client uses the straight-line method and estimates of economic life for 5 years and at the time when you audit the book value the client has reported at 0. The client sells all 10 vehicle for operations are valued at RM 80 million each and recognize total sales of RM 800 million as gain on sale of long-lived assets. You have confirmed to the buyer and checked the sales documents such as receipts and so on, where everything is appropriate.

b) Inventory audit is done. Total physical inventory and company records are appropriate. However, there is an outdated inventory. The product that has not been sold for a long time, so that its physical appearance has faded and is not like new anymore. The client does not make adjustments to the decline in the value of obsolete inventory. The client said that they would hold a bazaar by selling the obsolete goods directly to the end user, then adjusting is done when the goods were sold.

c) The client has an investment in the form of securities in a material amount. At the end of the period, the value of shares owned by clients has decreased. Decreased to below the purchase price of the stock. The client does not include the impairment in the comprehensive loss section, when an inquiry is made, the client says that due to the impairment due to a pandemic outbreak, and after the pandemic outbreak ends, it is assumed that the value of the stock will rise again.

d) Sampling is done to confirm the client's accounts receivable to its customers, which are both modern and traditional retail home appliance stores. Auditor do not confirm to all customers, but only do sampling. The sample is chosen using the monetary unit sampling method, where you choose based on customers who have a material amount. After the whole sample is confirmed, auditor finds that there are some customers whose confirmed amounts are different, but the amount is immaterial. After using audit software to detect the unrecorded transaction, it was found that it was because there are unrecorded sales returns in small amount. The client acknowledged this and makes adjustments.

REQUIRED:

1. For each point numbers, identify each point as "fair" or "finding". Please provide reasons.
2. For each point numbers, identify each point of their type of audit objective and type of audit procedures. Provide reasons regarding audit objective and audit procedures chosen.