Please answer based on the marks allocated.

QUESTION 4 (a) Describe the advantages of performing analytical procedures to an auditor. (2 marks) (b) Distinguish the difference between permanent file and current file with two (2) relevant examples. (4 marks) (c) As part of the audit planning, auditor must understand the business operations and processes of the client. One of the methods to obtain the understanding is through identifying the related parties. Explain why this step is important and relate your answer with inherent risk, how related parties could help auditors in planning their audit effectively. (4 marks) (d) Berjaya Sdn. Bhd. (BSB) has the following internal controls related to the inventory and warehousing cycle: For each of the internal controls, identify the specific transaction-related audit objectives affected by the controls, its relevant general transaction-related audit objectives and describe the potential misstatement if the control is lacking. i. The inventory purchasing system only allows purchases from pre-approved vendors ii. The perpetual inventory system tracks the average number of days each inventory items were stored in the warehouse iii. Only authorised inventory warehouse personnel are allowed in inventory storage areas. iv. All inventories products are stored in warehousing areas that are segregated from other storage areas. On a weekly basis, inventory accounting personnel select inventory items on hand in the warehouse and verify that the item is included in the perpetual inventory listing at the correct amount. vi. The perpetual inventory system subtotals the quantity of inventory in the system and interfaces with the GL system on a daily basis to ensure quantities agree. (15 marks) Please use the following template to answer this question: Internal Specific General Potential Controls transaction- transaction- misstatement related audit related audit when the control objective objective is lacking i. ii. (Total: 25 marks)