audit

(a) Lailan, the auditor in charge of Wau Sdn Bhd is auditing the shareholders equity account. She had made the decision to create substantial procedures independent of the company's internal controls. Wau Sdn Bhd is not listed on the Bursa Malaysia and it keeps its own shareholders' registry and share certificate book. There were significant share transactions involving shareholders in the year 2021. For these transfers, new share certificates were produced. The company also distributed two dividends during the year. Required: Explain FOUR (4) substantive audit procedures should Lailan apply in auditing the shareholders' equity account of Wau Sdn Bhd. (4 marks) (b) A company recently requested your firm to conduct a review of its financial statements for the six months ending 30 June 2021. A different accounting firm audited the financial statements for the year ended 31 December 2020. Required: i. Explain FOUR (4) differences between a review and an audit of financial statements. (8 marks) ii. Discuss TWO (2) general procedures you would carry out when conducting a review of financial statements. (4 marks) (c) c) Ultimate Fitness Sdn. Bhd., a company dealing with fitness and health care products, has asked your firm for assistance in setting up its website. The Chief Executive Officer of the company is concerned that potential customers may be reluctant to place orders over the internet with the company. He is interested to find out ways to provide assurance to customers about secured websites. Required: Explain TWO (2) reason why customers are reluctant to engage in electronic commerce. (4 marks)