Hi ,

This question is written in two languages Malaysian and English. Just ignore the Malaysian language ..

Could you please help me answer it ? ( In English)

Thanks in advance

SOALAN I QUESTION 2 Frizzy Fruity Cola Co (Frizzy Fruity) manufactures fizzy drinks such as cola and lemonade as well as other soft drinks and its year end is 31 December 2019. You are the audit manager of Johan & Co and are currently planning the audit of Frizzy Fruity. You attended the planning meeting with the engagement partner and finance director last week and recorded the minutes from the meeting shown below. You are reviewing these as part of the process of preparing the audit strategy. Minutes of planning meeting for Frizzy Fruity Frizzy Fruity's trading results have been strong this year and the company is forecasting revenue of RM 85 million, which is an increase from the previous year. The company has invested significantly in the cola and fizzy drinks production process at the factory. This resulted in expenditure of RM 5 million on updating, repairing and replacing a significant amount of the machinery used in the production process. As the level of production has increased, the company has expanded the number of warehouses it uses to store inventory. It now utilizes 15 warehouses, some are owned by Frizzy Fruity and some are rented from third parties. There will be inventory counts taking place at all 15 of these sites at the year end. A new accounting general ledger has been introduced at the beginning of the year, with the old and new systems being run in parallel for a period of two months. As a result of the increase in revenue, Frizzy Fruity has recently recruited a new credit controller to chase outstanding receivables. The finance director thinks it is not necessary to continue to maintain an allowance for receivables and so has released the opening allowance of RM1.5 million. In addition, Frizzy Fruity has incurred expenditure of RM 4.5 million on developing a new brand of fizzy soft drinks. The company started this process in January 2019 and is close to launching their new product into the market place. The finance director stated that there was a problem in November in the mixing of raw materials within the production process which resulted in a large batch of cola products tasting different. A number of these products were sold; however, due to complaints by customers about the flavor, no further sales of these goods have been made. No adjustment has been made to the valuation of the damaged inventory, which will still be held at cost of RM 1 million at the year end. As in previous years, the management of Frizzy Fruity is due to be paid a significant annual bonus based on the value of year-end total assets. Dikehendaki / Required: (a) Jelaskan risiko audit dan komponen-komponen risiko audit. Explain audit risk and the components of audit risk. (4 markah/marks) (b) Merujuk kepada minit yang disediakan, kenalpasti dan terangkan ENAM risiko audit, dan jelaskan respons-respons yang juruaudit harus ambil terhadap setiap risiko dalam merancang audit Frizzy Fruity Cola Co. Referring the minutes provided, identify and describe SIX audit risks, and explain the auditor's response to each risk in planning the audit of Frizzy Fruity Cola Co. (12 markah/marks) 3/6 CIA2004 ** Nota: Anda boleh mengemukakan jawapan anda dalam format jadual. Note: You may present your answer in tabular format. (c) Kenal pasti selain daripada risiko audit, perkara - perkara lain yang perlu dimasukkan dalam perancangan dan strategi audit untuk Frizzy Fruity Cola Co; dan bagi setiap perkara-perkara yang anda berikan, sila berikan contoh yang relevan untuk menyokong jawapan anda. Identify other matters, other than audit risks, that should be included within the audit planning and strategy for Frizzy Fruity Cola Co; and for each matters you've provided, please support with relevant example to support your answer. (4 markah/marks) [Jumlah/Total: 20 markah/marks]