B. The following is an excerpt of Independent Auditors' Report to the Members of 7-Eleven Malaysia Holdings Berhad (Incorporated in Malaysia) in relation to "Key Audit Matters". Independent Auditors' Report to the Members of 7-Eleven Malaysia Holdings Berhad (Incorporated in Malaysia) Report on the audit of the financial statements Opinion We have audited the financial statements of 7-Eleven Malaysia Holdings Berhad, which comprise the statements of financial position as at 31 December 2017 of the Group and of the Company, and the statements of comprehensive income, statements ...... Basis for opinion We conducted our audit ..... Key audit matters We have determined that there is no key audit matter to communicate in our report on the financial statements of the Company. The key audit matter for the audit of the financial statements of the Group is described below. This matter was addressed in the context of our audit of the financial statements of the Group as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter. For the matter described below, our description of how our auditaddressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditors' responsibilities for the audit of the financial statements section of our report, including in relation to the matter described below... 1. Recognition of rebates and incentives income from vendors (Refer to Notes 2.25, 3. 1(a), 5 and 15 to the financial statements) The Group receives various types of allowance in the form of rebates and incentives from its vendors. These allowances contribute significantly to the Group's profit before tax. During the financial year ended 31 December 2017, the Group has recognised rebates and incentives income amounting to RM186,400,000 of which majority has been received and the balance of RM39,630,000 is receivable as at 31 December 2017.... Other matters This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies Act 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report, ERNST & YOUNG Kua Choo Kai AF: 0039 No. 2030/03/20(J) Chartered Accountants Chartered Accountant Kuala Lumpur, Malaysia 18 April 2018 REQUIRED: (a) Differentiate between Key Audit Matters paragraph and Emphasis of Matter paragraph in the independent auditor's report. (4 Marks) (b) Explain TWO (2) purposes of communicating the Key Audit Matters in an auditor's report. (4 Marks) (c) Determine the type of opinion to issue if the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, and the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be both material and pervasive. (2 Marks)