QUESTION 2 (20 MARKS) Andrian & Co, a firm of Chartered Certified Accountants, with specific responsibility for the quality of audits. Andrian was appointed auditor of Zaleha Sdn. Bhd., a provider of waste management services, in July 2020. You have just visited the audit team at Zaleha's head office. The audit team is comprised of an accountant in charge (AIC), an audit senior and two trainees. Zaleha's draft accounts for the year ended 30 June 2020 show revenue of RM11.6 million (2019 - RM8.1 million) and total assets of RM3.6 million (2019 - RM2.5 million). During your visit, a review of the audit working papers revealed the following: (a) "On the audit planning checklist, the audit senior has crossed through the analytical procedures section and written 'not applicable - new client'. The audit planning checklist has not been signed off as having been reviewed. (b) "The AIC last visited Zaleha's office when the final audit commenced two weeks ago on 1 August. The senior has since completed the audit of tangible non-current assets (including property and service equipment) which amount to RM0.6 million as at 30 June 2020 (2019 RM0.6 million). The AIC spends most of his time working from Andrian's office and is currently allocated to three other assignments as well as Zaleha's audit. (c) "At 30 June 2020 trade receivables amounted to RM2.1 million (2020 - RM0.9 million). One of the trainees has just finished sending out first requests for direct confirmation of customers' balances as at the balance sheet date. (d) "The other trainee has been assigned to the audit of the consumable supplies that comprise inventory amounting to RM88,000 (2020 - RM53,000). The trainee has carried out tests of controls over the perpetual inventory records and confirmed the 'roll-back' of a sample of current quantities to book quantities as at the year end Required: Identify and comment on the implications of these findings for Andrian & Co's quality control policies and procedures