Audit Practise and Procedures Course NovelCorp, a CPA firm in Clarendon, audited a medium-size agro-processing client that processes raw materials and intermediate products. A significant portion of the clients capital was provided by the syndicate of 40 limited partners. The owners of these interests, including several lawyers, were knowledgeable business and professional people. NovelCorp audited the company for 4 consecutive years, from its inception, for an average annual fee of approximately $8,646,000. The audits were well done by competent auditors. It was clear to the firm and to others who subsequently reviewed the audits that they complied with auditing standards in every way. In the middle of the fifth year of the companys existence, it became apparent that the marketing plan it had developed was overly optimistic and the company was going to require additional capital or a significant strategy change. The limited partners were polled and refused to provide capital. The company folded its tent and filed bankruptcy. The limited partners lost their investment in the company. They subsequently filed a lawsuit against all parties involved in the enterprise, including the auditors. Over the next several years, the auditors proceeded through the process of preparing to defend themselves in the lawsuit. They went through complete discovery, hired an expert witness on auditing audited related issues, filed motions, and so forth. They attempted a settlement at various times but the plaintiffs would not agree to a reasonable amount. Finally, during the second day of trial, the plaintiffs settled for a nominal amount. It was clear that the plaintiffs knew the auditors bore no fault but kept them in the suit anyway. The total out-of-pocket cost to the audit firm was $534 million, not to mention personnel time, possible damage to their reputation, and general stress and strain. Thus the cost of this suit, in which the auditors were completely innocent, was more than 61 times the average annual audit fee earned from this client. REQUIRED As it relates to the case, LIST and explains FIVE (5) actions that an Audit Firm could have taken to minimize its liability and prevent the lawsuit.