PLEASE ANSWER THE QUESTION ASAP URGENTT

You are the audit manager for the audit of Putrox Sdn Bhd (Putrox), a company involves in oil refining. In view of the hazardous nature of the company's activities, compliance with health and safety at work regulations is important to Putrox's operations. Thus, the risk management committee has established strict procedures, including monitoring, to ensure compliance.

Required:

Describe the business risks that Putrox could be exposed if it breaches any of these regulations and the implications on the financial statements in the event of such breaches in relation to audit risk. (5 marks)

You are the audit manager of Weng & Co. Public accounting firm. During the subsequent events review on the audit of Maxim Sdn Bhd (Maxim) for the year ended 30 April 2021, you discovered that a machine, which was included in the statement of financial position at a carrying value of RM 200,000, was sold for RM150, 000 on 12 May 2021. The management of Maxim refused to make any adjustment to the financial statements in respect of this matter. The draft financial statements for the year ended 30 April 2021 show a profit before tax of RM 450,000 and total assets of RM 980,000.

Required:

(a) Describe FOUR (4) audit procedures to audit subsequent events. (4 marks)

(b) Explain, with reasons, the action which should be taken by the audit manager in respect of the above matter.