Case- 1(A) You are the Audit Manager on the audit of Al-Salam EST (ASEST) for the year ended December 31, 2019. ASEST is engaged in the manufacture of a wide range of plastic products. While reviewing the initial work performed by the audit team, the following matters have come to your notice. (i) The quantity of material scraped during the year is material in nature which is different from the quantity of scrap sold. The company's records show nil balance for the scrap both at the beginning and at the close of the year. No reconciliation for the difference has been provided by the company. (ii) Sales for the year have increased by 7% over the previous year. However, it has been noted that sales in the last two weeks of December 2019 have been exceptionally high and represent 15% of the annual sales. The audit working papers show that 70% of the sales in the last two weeks of December were made to two new customers whose credit assessment has not been formally documented. (iii) During the year, ASEST purchased a machine for OMR 25 million. The payment voucher is duly supported by the invoice from the supplier. However, the fixed assets schedule provided by the client shows the amount capitalized as OMR 2.5 million. Depreciation has been charged on this amount. The difference of OMR 22.5 million is appearing in the Bank Reconciliation Statement as unreconciled. (iv) During the month of December, 2019 sales invoices were not recorded in books of accounts and payment of wages was much higher compared to last year. Qn-1 Analyze each of the above situations and assess whether it represents a fraud or an 4 error. Justify your answer with reasons