Question 1

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d) Your firm is performing an assurance engagement to review the interim financial information of Zaman Berhad (Zaman) for the six months ended 31 June 2021. Your firm is due to sign its assurance report on 15 August 2021. On 11 August 2021, you discovered that Zaman paid RM1 million to a customer on 8 August 2021 in settlement of a claim made by the customer against Zaman. Explain the steps your firm should take in respect of this discovery.

e) During the external audit of Bersatu Berhad (Bersatu), your firm has concluded that there is a material uncertainty over whether Bersatu is a going concern. State, with reasons, the implications for the auditor's report.

f) Your firm is the external auditor of Rubi Berhad (Rubi) for the year ended 31 May 2021. Following a due diligence investigation by your firm, Rubi acquired in January 2021 the trade and assets of Biru Berhad from the liquidator. These assets are included in Rubi's statement of financial position at 31 May 2021. Identify and explain the principal threat to your firm's objectivity in respect of the audit of the financial statements of Rubi for the year ended 31 May 2021 and state the safeguards that should be applied.