Question 1 The year end of the business is 31 March 2020, and it is now June 13, 2020. Tishma Ltd is in the final stage of the audit. The financial statements and audit report are scheduled to be finalized on June 30, 2020, in time for submission to the stock exchange. Unfortunately, right before the finalization of the audit report and financial statements are signed, the following material matters were brought to the auditors' attention: On April 3, 2020, the supplier for the snack products which brings in 50% of the company's sales had a fire and was fully burnt down. Tishma Ltd can source the same products from another supplier which will take nine months to finalise. The auditors discovered on May 16, 2020, that a factory building costing over $350M was purchased during the year and the accountant booked the amount in the financial statements as $250M on the 31 March 2020. The third event is that on June 4, 2020, management discovered that an amount of $500,000 for electricity was booked to the water expense account. Required: For each event above: (1) Explain whether each event is adjusting or non-adjusting. (3 marks) (ii) Explain the auditors' responsibility for subsequent events and the audit procedures and other actions that should be carried out for each event. (9 marks)