Question 1: Your firm is the auditor of beautiful company, a small precision enginee company which makes parts for car engines. The company maintains a general ledger, together with trade receivables and trade payables. It also maintains a non-current assets register. You have been assigned to the audit of the company's financial statements for the year ended 30 November 2020 and are aware that: (1) In May 2020, the company disposed of a large lathe machine for $30,000 and replaced it by purchasing two small but costly machines. (2) The company's trade receivables ledger included several customers, with large credit balances on their accounts as of 30 November 2020. (3) Throughout the year the company's cashier has been responsible for bank payments, the receipt and banking of trade receivables monies and the recording of all bank transactions in the company's accounting records. As the cashier is a very trusted employee the company's directors expect your firm to restrict its audit procedures in this area. (4) Your firm's audit procedures will include checking a sample of beautiful year-end supplier statement balances. Required: (a) Describe THREE audit tests (with transactions related audit objectives) your firm should conduct regarding the disposal of the lathe machine (b) Describe THREE audit tests (with balance related audit objectives) that should be conducted regarding the balance of receivables and other existing non-current assets. (c) Explain the extent of the substantive procedures your firm should conduct in the bank area of Beautiful Company. (10 marks)