c) The financial year-end of Jorena Berhad is 31 December 2019 and the audit report is to be dated 28 February 2020. For each of the transactions or events below, interpret the audit procedures that should have brought the item to the attention of the auditor and the form and reasons for each of the disclosure or adjustment in the financial statements.

i.On 3 January 2020, the company received a shipment of raw materials from Japan. The materials had been ordered in October 2012 and shipped FOB shipping point in November 2019.

i. Jorena has initiated a lawsuit against the supplier of detective car wax. Your client's lawyer believes it is highly probable that the company will win the suit and recover the RM255, 000 lost as a result of the customer's lawsuit and the recalling of the product.

iii.On 5 February 2020 a customer with a large balance past due at year-end declared bankruptcy.

iv.On 20 January 2020, a serious explosion injuring dozens of workers at one of the company's plants was reported in the local newspapers.