Harrison, Fisher, Hamill (HFH) is Australia's largest regionally-based professional services firm with offices in all major regional cities. It's early February 2022 and an audit team led by Paddy Nets, a senior HFH partner with 19 years of experience, is continuing a discussion about a number of clients with 30 June year ends. Question 1. Calder Pastoral-audit planning (5%) Calder Pastoral Pty Ltd (Calder) is a large agricultural conglomerate with two subsidiaries: Desmond Downs Pty Ltd which runs a number of cattle stations in outback Western Australia and ARG Pty Ltd (ARG) a rural supplies company for which it generally sells franchises but sometimes operates directly. Not long after the installation of its new accounting system in November 2021, Calder's long-standing CFO (Ava McMaster) died suddenly and has yet to be replaced, leaving other members of the senior leadership team to undertake her duties as best they can. -Calder has also experienced considerable staff turnover in its accounts payable department, including the departure of the accounts payable manager in October 2021. causing some delays in the processing of payments. In December 2021 the Australian Taxation Office (ATO) undertook a desk audit and raised a number of issues but to date, no assessment has been issued. Calder's tax advisers are following up on these matters. As part of its cost-cutting program, Calder has decided to abolish its internal audit department from 1 April 2022, 3 months before year-end. Required With reference to relevant audit standards: 1. identify the issues that would influence the scope of the audit engagement 2. explain the likely impact of each issue on the audit plan Question 2. Dumbrell Soft Drinks-internal controls (6%) Dumbrell Soft Drinks Pty Ltd (Dumbrell) is a well-regarded family-owned manufacturer of premium soft drinks based in the Central West of NSW. The following notes have been made in relation to Dumbrell's sales system. orders are received at the sales department by phone, website, or via a sales representative. for sales placed by phone or via sales representatives, data entry clerks enter orders via computer terminals in the sales department which then trigger various edit checks. orders that satisfy all edit criteria result in the production of a picking slip that lists the goods ordered. orders that satisfy all edit criteria except the credit limit test are recorded on file for the credit-control clerk for review. -orders that fail any other edit criteria are rejected by the system and passed onto the department's supervisor for investigation. picking slips are produced in the dispatch office and then forwarded to the warehouse by the dispatch supervisor. a storeperson picks and assembles the orders. If goods are not in stock the storeperson alters the picking slip quantity to reflect actual goods picked. The storeperson then initials the picking slip prior to forwarding it together with the goods to dispatch. via at terminal located in dispatch, the dispatch clerk agrees the picking slip to physical goods picked, making adjustments for any stock-outs, before printing the invoice -the dispatch supervisor agrees the details of the goods invoiced to the picking slip. The supervisor then initials a copy of the invoice before forwarding it to the accounts department. two copies of the invoice are sent with the goods. One copy of the invoice serves as a delivery docket, signed by the customer on delivery and returned to dispatch by the delivery driver. at the end of each day, the accounts receivable master file is updated. Required 1. Identify the internal controls in the system that are potentially effective, the risk that the control could alleviate, and one test of control for each of the identified potentially effective controls. Answer this question using the following headings: Effective control b. Risk alleviated Test of control 2. Identify the internal control weaknesses in the system and briefly discuss the audit risk each one poses. Answer this question using the following headings: Contal weken b. Audit rik ped 3. Provide an overall assessment of internal controls relating to Dumbrell's sales system.