QUESTION 2 30 MARKS After you completed your Bachelor of Accounting degree, you commenced with your articles at an auditing firm called Balance Auditors (Pty) Ltd. "Balance" is located in Hermanus in the Western Cape. You were assigned as an Audit Clerk on the audit of a new client called Thandi Wines (Pty) Ltd "Thandi". Background information: Balance Auditors (Pty) Ltd The audit firm has two partners and five professional staff members that render audit services, mainly in the mining industry. Balance however recently obtained Thandi as a new client. Mr. Vernon is one of the two Audit Partners at Balance and the partner in charge of the audit of Thandi. Ms. Nicole, an Audit Manager, as well as Ms. Abigail, an Audit Senior, will assist Mr. Vernon with this audit. The directors of Thandi requested that Balance finalise the audit within four weeks after the financial year, which places the auditors of Balance under extreme pressure. Background information: Thandi Wines (Pty) Ltd Thandi's financial year-end is December 2021.Thandi is a wine producing company and owns its land and vineyards. They have in-house winemakers that produce wine on the premises with the bulk of their wine being exported. Thandi finances were negatively impacted during the Covid-19 pandemic and, in 2021, they started recovering again as the international borders started to re-open. The CEO of Thandi, Mr. Craig, mentioned that he generally does not like external auditors. Mr Craig also mentioned that he and Mr. Vernon, the Audit Partner, are friends and Mr. Vernon regularly assists him to complete his personal tax returns. This is why he would like Balance to perform the audit. Mr. Craig mentioned that he runs Thandi with an iron fist and that "Employees must do as I say or they can start looking for employment elsewhere. This is the only way to run a profitable business and to show a nice big profit every year."