PLEASE ANSWER QUESTION 1BSingapore Airlines is a global company dedicated to providing air transportation services of the highest quality and to maximising returns for the benefit of its shareholders and employees. Its principal activities consist of passenger and cargo air transportation, engineering services, training of pilots, air charters, as well as tour wholesaling and related activities.Singapore Airlines' independent auditor is KPMG LLP. You are an audit manager in KPMG LLP, and you are on the engagement team auditing Singapore Airlines.Question 1Audit planning is based on the audit risk model. Audit planning involves gathering information about the client and its environment in order to obtain an understanding of the client's business operations and risks, which helps the auditor to assess the client's inherent and control risk. This guides the auditor in developing an overall audit strategy. Based on the audit strategy, the auditor determines the necessary audit procedures to be included in the audit plan. You have been tasked by the audit partner to conduct some background research to gain an understanding of Singapore Airlines and its environment, which would assist your audit team to identify and analyse the inherent risks that can have a material effect on the financial statements. The auditor needs to collect various types of information about Singapore Airlines and its environment, including the industry, regulatory and other external factors, as well as the nature of Singapore Airlines' business, and its objectives and strategies. The audit partner requests you to write a report based on your findings.https://www.singaporeair.com/saar5/pdf/Investor-Relations/Annual-Report/annualreport2021.pdfSIA LATEST ANNUAL REPORT LINK

m em if I33 as The auditor needs to collect various types of information about Singapore Airlines and its environment, including the industry, regulatory and other external factors, as well as the nature of Singapore Airlines' business, and its objectives and strategies. The audit partner requests you to write a report based on your ndings. (a) Indicate and explain the industry, regulatory and economic factors that are relevant to the auditor's understanding of Singapore Airlines and in identifying risks of material misstatements in the nancial statements. Discuss the following: I Industry conditions, e.g. competitive conditions, technological changes, and industry trends; 0 Regulatory factors; and 0 Economic conditions. Your analysis should cover three (3) industry conditions, one (1') regulatory factor, and two (2) economic conditions. Make an overall assessment as to whether the information discussed in (a) about Singapore Airlines' industry, regulatory and economic factors point to inherent risk as high, medium, or low. Justify your assessment. You may use the following template below to structure your answers: - II Re_ lato factor Economic conditions - Overall assessment on inherent risk: Hi_ | fMedlumeow + Es - lain wh (20 marks) (b) The audit partner has also requested you to perform some research to help the engagement team to gain an understanding of the nature of the client, and its operating characteristics. Indicate and explain how the nature of the client is relevant to the auditor's understanding and helps the auditor to identify risks of material misstatements. Discuss the following: - Client's business strategy; and I Other operating characteristics, such as the types of products and services, locations, and compensation. \"WWW M'ng