(i) On 2 January 2020, the Automobile Sdn Bhd (Auto) received a notice from its key supplier that all prices would be increased by 10%. As a result, Auto revalued all its inventories as at 31 January 2020 accordingly from RM0.5 million. Auto has total assets of RM3 million.

(ii) During financial year ended 31 January 2020, Whitehouse (White) Manufacturing Sdn Bhd does not permit its auditor to observe the annual physical inventory which worth RM3 million and White has total assets of RM3.75 million. The auditor was not able to satisfy himself by other auditing procedures.

(iii) After the reporting date, an auditor learned of heavy damage to one of a client's, named Uplus Berhad (UB) , two plants due to a recent fire. The loss of RM1.5 million will not be reimbursed by insurance. The newspapers described the event in detail. The financial report and appended notes prepared by the client did not disclose the loss caused by the fire. As at 31 January 2020, UB has total assets of RM2 million.

a) Calculate the materiality of each case

b) Explain relevant accounting treatment or standards for each case

c) Recommend ONE audit procedures the audit team should undertake to resolve each issue

d) Describe the impact on the audit report if the matters remain unsolved.