Question 1: [20 Marks] 1-ABC Company have had recurring losses at its comprehensive income statement for the last three years. 2-DAN Company had A pending litigation against the company. The amount claimed by the plaintiff is $250,000. 3-The following Ratios Extracted from ALFA Company books: Credit Sales% of total sales) 2019 55% 2020 75% Industry average 35% Receivables Turn over 3.56 2.41 7.1 Accounts Receivables % of Total assets 32.7% 44.2% 25.4% 4-The auditor of Beta discovers client's tax evasion. S-The auditor of Client X Company discovers a fraudulent act committed by a senior employee of XO Company. 6-PWS Audit firm was approached by Zeta Company to audit its Financial Reports for the first time. After accepting the engagement, PWS discovered misstatements on the ending balance of Accounts Receivable. Requirements: For each independent issue identify & explain briefly: 1. The effect on the Audit Procedures (Planning, Risk Assessment, Materiality Level identified by Auditor, Auditor's appropriate Response & Course of actions, Going Concern issue, Key Audit Matters, Type of Audit Opinion) You are expected to make your own assumptions & Scenarios, explain the appropriate Course of actions & Responses of the auditor, with appropriate Justifications to your answers