Due to the current economic conditions, there has been a significant increase in the demand of solar geyser especially among businesses. This has led to the company generating large volumes of sales over the past 12 to 16 months. Solar has been known in the industry to be disagreeing with the auditors when it comes to misstatements found on the financial statements and the correcting thereof. Furthermore, the CFO has had a reputation for being intimidating to the auditors by being aggressive and evasive in answering audit queries. Nangula & Partners is a small audit firm of which their clientele is mainly small privately owned companies, for this reason the partner in charge of the audit was planning to use Marinda as the audit manager of the audit as she is the only senior manager in the audit firm. You are required to: a) Discuss the factors that Nanguia & Partners had to consider before accepting the appointment as external auditors to Solar (Pty) Ltd. (15) (Include in your answer types of threats identified and safeguards needed to reduce the risk) b) Identify the risks of material misstatement from the above scenario. (10) Due to the current economic conditions, there has been a significant increase in the demand of solar geyser especially among businesses. This has led to the company generating large volumes of sales over the past 12 to 16 months. Solar has been known in the industry to be disagreeing with the auditors when it comes to misstatements found on the financial statements and the correcting thereof. Furthermore, the CFO has had a reputation for being intimidating to the auditors by being aggressive and evasive in answering audit queries. Nangula & Partners is a small audit firm of which their clientele is mainly small privately owned companies, for this reason the partner in charge of the audit was planning to use Marinda as the audit manager of the audit as she is the only senior manager in the audit firm. You are required to: a) Discuss the factors that Nanguia & Partners had to consider before accepting the appointment as external auditors to Solar (Pty) Ltd. (15) (Include in your answer types of threats identified and safeguards needed to reduce the risk) b) Identify the risks of material misstatement from the above scenario