For each of the situations outlined above, state whether or not you would modify the audit opinion. Give reasons for your conclusions and describe the modifications, if any, to each audit report. (10 marks)

Described below are TWO situations that have arisen at unrelated external audit clients of your public accounting firm. The year end in each case is 31 December2021. Menut Bhd (Minut) Your audit staff informed you that the accounting records of Menut Bhd, related to cash sales amounting to RM 140,000 could not be located for the purpose of audit. According to Minx's financial controller, the records were destroyed during the recent fire. The total revenue registered for this financial year is RM 2,000,000. Brisk Bhd (Brisk) The financial statements of Brisk indicate the purchase of a motor vehicle from Silom Sdn Bhd (Silom), for RM76, 000, which has been included in non-current assets. When reviewing Brisk's board minutes you discovered that Saxon is owned and managed by the husband of Brisk's managing director. The directors of Brisk refuse to disclose the transaction in the notes to the financial statements as they claim that the amount is not significant. The draft financial statements of Brisk show total assets of RM 30 million