Martin Fretton has been appointed to lead the audit of JP Transport Ltd for the year ended 31 December 2020. Martin has just started carrying out the fieldwork for the audit and it has become apparent through his discussions with the client that there was something significantly wrong with last year's audit that was carried out by his firm. Martin's discussions with the manager of last year's audit indicate that the audit senior carried out the work on his own as the client is only small. The audit visit was one week and at the end of the Friday of that week, the senior handed over the completed audit working papers to the manager. That Friday happened to be the last day of employment for the audit senior who had accepted a job as CFO for a company overseas. It is clear to Martin that the audit file has recorded work that was not actually carried out. The file includes procedures that refer to documents that the client does not maintain and also includes explanations that do not correspond to what Martin now knows to be the case. Martin suspects that the audit file from last year is an elaborate fiction. It looks like an audit file should and appears in all regards to be plausible; however, the details do not appear to correspond to the real of the audit client. Martin is discussing with the audit manager how to proceed. REQUIRED Discuss the significance of audit quality control and identify the likely outcome of the (10 marks) a. above case. b. Explain how the situation above could have been prevented. (6 marks) This case reiterates the importance of technical and ethical competence in enhancing audit judgement and quality. Explain what the terms technical competence and ethical C.