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Co, () For each threat explain how l l marks) Fuse Tea Co (Fuse) manufactures drinks such as a mixture of tea and lemonade. Its year end is 30 June 2017. You obtained during this meeting. Fuse's trading has strongly improved this year and the company is forecasting revenue of $20 million, which is a Problem 2 are an audit manager of Accounting& Audit Co and are currently planning the audit of Fuse. You attended the planning meeting with the audit engagement partner and finance director last week and below is information significant increase from the prior year The company has invested significantly in the production process at the factory. This resulted in expendliture of s million on repairing and replacing a significant amount of the machinery used in the production process In order to finance this machinery repairing and replacing, a sum of SI million was borrowed from the bank. This due to be repaid over four years. As the level of production has increased, the company has expanded the number of warehouses it uses to s inventory. It now utilises 5 warehouses (only 2 were available last year); some are owned by Fuse and som Fuse has incurred expenditure of $0.5 million on developing a new brand of soft drinks. The company starte Using the information above, identify and deseribe five audit risks and explain the auditor's response to e rented from third parties. There will be inventory counts taking place at all 5 of these sites at the year end. process in Apri 2017 and is close to launching their new product into the market place. Reguired in planning the audit of Fuse Tea Co. (40