ONE Ng'ombe Maziwa project is a project that buys milk from dairy farmers, processes the milk and delivers them to retail outlets. The project was launched in Jan 2022 and is located in Arusha region. You have been appointed as the project auditor for the year ending 31 Dec 2022. This is the first time the project is being audited. During the course of auditing, you identified the following. 1. The company employed 20 drivers each responsible for delivering milk to customers. Each driver delivers milk to between 20 and 30 shops on a daily basis. Each driver though carries an EFD machine rarely uses it. 2. Theprojectishandledbytheprojectmanager,Mr.Mtatawhoisassistedbyan accounting clerk Ms. Matatizo. Recruitment, training and dismissal are handled directly by Mr. Mtata without approval of the Board. There are no personal files of drivers. At the end of the month, Mr. Matata send an email to Ms. Matatizo of the list of staff to be paid for that respective month. On receipt Ms. Matatizo check if there are bank details on the list and pay the staff directly through online banking. The email serves as an authorization to pay. Further, Mr. Matata does not check if the clerk has deduct and remit the statutory contributions such as PAYE, SDL, NSSF and WCF. He simply believe he will do the needful. There are several occasions where the clerk forgot to deduct the statutory contribution and remit the same to relevant authorities. 3. The project rented an office at Moshono-Arusha on 01 July 2022. The rental charges were TZS 1,200,000 per annum. The rent was dully paid on 15 July 2022. Mr. Matata instructed the clerk to pay the rent to the Landlord (who happened to be his wife) in full amount without deduction of any tax or duty. 4. Mr. Matata usually takes petty cash from the office to cover for business expenses such as fuel, repairs and maintenance, cleaning costs, and stationaries. Accountability report for such funds have never been made by Mr. Matata. 5. Despite having non-current assets such as vehicles, computers and accessories and furniture and fittings, the project does not have a fixed asset register, as they know less of its usefulness. 2 6. Mr. Matata salary fluctuates monthly and is paid in cash. No record of this is maintained by the project Required: Draft management letter to the Management of Ng'ombe Maziwa for the year ended 31 Dec 2022. The letter should be in table form, with the following columns. i. Findings. ii. Effect/risk iii. Recommendations. QUESTION TWO (4 Marks) (4 Marks) (4 Marks) (Total: 12 Marks) The East African Crude Oil Pipeline Project (EACOP) is a pipeline that will transport oil produced from Uganda's Lake Albert oilfields to the port of Tanga in Tanzania where the oil will then be sold onwards to world markets. The pipeline is buried and once topsoil and vegetation have been re-instated people and animals will be able to cross freely anywhere along its length. It runs 1,443km from Kabaale, Hoima district in Uganda to the Chongoleani Peninsula near Tanga Port in Tanzania. 80% of the pipeline is in Tanzania. It is a buried thermally insulated 24 pipeline along with six pumping stations (two in Uganda and four in Tanzania) ending at Tanga with a Terminal and Jetty. Here crude oil will be loaded onto tankers. The real construction on the ground will commence in 2023 ready for first oil in 2025. Required: As a project auditor, with a practical example of the EACOP project identify typical project stakeholders and discuss their potential interests. Provide answer in table form, with the following columns: i. Stakeholders ii. Potential Interest (4 Marks) (4 Marks) (Total: 8 Marks)