Henry is seeking your advice on the selection of substantive procedures for the audit of his client, Clash Ltd. Clash Ltd is a specialist outdoor clothing and equipment retailer and has experienced reasonable growth over the past three years, although this growth has come substantially from the clothing section Sales of camping and climbing equipment are down significantly so far this year in all stores except Brisbane. Early results from audit testing show that controls over the sales process are reasonably effective, resulting in a low to moderate control risk. Henry believes he will need to do some substantive testing of sales, but is unsure about which procedures would be most useful. He has access to Clash Ltd's monthly sales budgets for the period and results for the eight months of the year to date. Required Write a memo to Henry explaining the substantive procedures for sales that he could choose from and which would be most useful in these circumstances (20 marks). LET Year-end for all CMG entities is 30 June You are the audit partner reviewing the audit work papers for CMG for the year ended 30 June 2020. is 13 July 2020 and the audit report is due to be signed in three weeks' time. During your review you note that the fixed-term borrowings of CMG totalling $75 million are approac maturity and CMG does not seem to have renegotiated any terms of refinancing. You are aware, from experience with other clients, that banks are reluctant to extend financing on the same terms in the cu market. The financing of CMG was historically managed by the group's treasurer who left the group si months ago and has not been replaced. CMG's financial controller, who has been with the group for nine months, has advised you that he has busy renegotiating with some of CMG's key suppliers who recently requested cash on delivery for all rather than extending the normal credit terms. You are also aware that a fire that occurred in the hospital cafeteria last week was not adequately cover insurance. Fortunately, no one was seriously injured in the fire, but the cafeteria was so badly damaged had to be closed. While discussing this matter with CMG's law firm, they reveal that the hospital is unli have adequate professional indemnity insurance to meet the current demands of several malpractice that have been brought against the hospital in the last 12 months. (a) Are there any going concern issues for CMG? Explain. If so, what are the mitigating circumstan (10 marks)? (b) How will you recommend the issue be handled in the financial report and the audit report (1 marks)