I 'BZ agrees to close down its current operations in the United Kingdom within one year of theagreement being signed.' [These operations curreniiy contribute 4 per cent of total net profit.) I 'BI agrees that two of its six directors will be seconded to the joint venture for two years to overseeits operations.' (T his will involve the directors moving from Australia to the United Kingdom.) D In order to maintain a steady supply of quality barley to the Australian breweries, 32 has entered into athree-year contract with a supplier. This contract provides in part: I '82 guarantees to purchase the supplier's entire stock of Grade A barley over the period of thecontract. The price paid will be market rate less it) per cent.' I 'Should the supply of Grade A barley fall below BI's requirements, BI can purchase barley to theamount of the shortfall from other sources.' E Brand )1 beer comprises 30 per cent of total revenues. A recent Brand X beer tasting festival in Europeended with hundreds of people being taken to hospital with severe stomach cramps. The problemis believed to relate to contamination of an ingredient used in the beer. This ingredient is producedcentrally in Sydney and distributed to all the breweries for use in their manufacturing operations. F New environmental laws introduced in Australia during the year have imposed the following statutoryaccounting regulations on the Australian operations of 32: I The l'cost' of waste discharges into waterways must be charged as an expense, to re?ect the reducedquality of the water post-discharge. I The 'value' of any waterways situated on company property must be taken up as an asset. Thewaterways must be amortised as detailed above. The value of the watenvays will not be allowed tofall below T13 per cent of their original value. REQUIREDExplain how each situation would affect your overall audit plan. Include reference to the natureand extent of audit evidence which would need to be accumulated.