please help i need 500 words

Section A Scenario Mr. Fahad works with Saed Al Balushi Audit as an audit manager. The audit for Glitz L.LC, one of the largest fashion chains in Oman with 20 locations throughout the nation and a wide selection of clothing and accessories for men, women, and kids, is in the audit planning stages for the year ending December 31, 2021. For the past ten years. Mr. Fahd has been auditing the company's financial accounts and has cultivated a positive working relationship with the management. Due to his proficiency in completing the organization's audits on time, he has been given gift vouchers by Glitz LLC each year in the amount of RO 250. The management of Glitz LLC is very happy with his work and has a contract with the management of Saed Al Balushi that only allows Mr. Fahad's team to audit Glitz LLC. The management of Glitz LLC is familiar with Mr. Fahad's auditing procedures and has known him for the past ten years. The management is really pleased with his work as a result of his adaptability in meeting management deadlines and producing audit reports. They have praised his performance because, thanks to his audit findings, the management was able to approve further projects. Mr. Fahd was a business consultant as well, and he helped with the choice to move the projects forward. However, Saed Al Balushi's management is unaware of his external ties to Glitz LLC. Concems were raised about the management of the Saed Al Balushi audit firm due to Glitz LLC's unusual interest in Mr. Fahd. Therefore, even though Mr. Fahad was contracted to conduct the audit, the company dispatched Mr. Hassen, a new audit manager, to examine Glitz ILC for the month of December 2021. Prior to the audit, management met with Mr. Hassen to explain the significance of conducting the audit with professional skepticism. The following are the notes that Mr. Hassen took after meeting Mr. Rashid, the company's financial controller: The financial accountant for the company became ill unexpectedly in May 2021 and was unable to finish drafting the year-end financial statements. In order to create the financial statements, the company hired a temporary financial accountant. The company needed to swiftly complete the year-end financial statement because it planned to obtain a loan from the bank to replace three machines in the production plant. The directors were anxious to produce promising outcomes in order to secure this funding. The ability of the new recruit to complete the financial statement within the allotted period impressed by the management. The company purchases its raw materials from worldwide vendors, and it is possible for things to transit over up to three weeks. A condition in the contract with the foreign supplier indicates that Glitz is in charge of the goods once they leave the supplier's facility. As a result, as soon as the materials leave the supplier's warehouse, the buying manager counts them as inventory. Abdullah, the buying manager, is the only one in charge of placing the order and paying the suppliers. Mr. Abdullah has publicly expressed to his colleagues his disappointment at not being given a promotion and his opinion that the department is paying him too little for the work he does. In fact, he advised them to look for alternative sources of income because the organization's top employees are not benefited by the new policies. UG 034 - ECAP - ASSIGNMENT - FALL 2223 4 f age There is now a new management structure in place. Each of the four new divisional managers oversees five shops. The standard pay for divisional managers includes significant incentives tied to the performance of each division. As a result, divisional managers have given their staff members challenging goals and offered to provide a letter of reference about their work for the new list of promotions that the HR department has delivered. One of the divisional managers is Mr. Saad. In the entire country, his division has the best performance. This is primarily because of how well one store in Al-Khuwair performed in terms of sales. The management has noticed a difference between Mr. Saad's behaviour and other managers when it comes to rating the performance of the staff at the Al - Khuwair branch and the other branches. However, the majority of the transactions made at that branch are credit-based sales for retailers. Each customer's credit limit is different, and Mr. Saad determines them. The Sales Director, a close friend of Mr. Saad, does not review the credit limit. The company's human resources (HR) division is in charge of recruiting all new employees. For new hires, HR fills up pre-printed joiners' forms, which demand all pertinent information, and after they have been confirmed, sends a copy to payroll so that the employee may be set up for payment. The joiner's form lists the staff members assigned as well as their employee number, which must be entered into the system before the new joiner can be added to the payroll. Since everyone in the payroll department has access to the password, which is updated every three months by the payroll director, they can change the standing information about employees in the payroll system.. The company's chief accountant, Mr. Ziyad, has put in place a new financial management system that generates more accurate data for the company to use. To address the problems with the current system, a new one was started. Rashid said that he appreciates Ziyad's efforts because he has put in a lot of time, including weekends, and has refused to take time off until the system is up and running smoothly. b. Explain the importance of auditors demonstrating professional skepticism in conducting the audit. (4 Marks)