QUESTION 2 [30 MARKS] Krafty Co manufactures a range of dairy products including, milk, yoghurt, and milk substitute products. Finished goods are stored in a cold room which is a rented warehouse before being distributed to around 20 supermarkets across the island. All the products have a shelf life of maximum 12 days. The company's year end is 30 June 2021. It is four months since the year-end at your audit client of Krafty and the annual audit of Krafty is almost complete, but the auditor's report has not been signed. The following events have just come to your attention. Both events occurred in late November. (a) On 15 November a fire broke in the warehouse rented by the company has destroyed 60% of the inventory held for resale. Krafty is presently preparing a claim for its insurance for the damaged products (b ) A batch of milk produced by Krafty was found to contain some chemical impurities. Over 50 consumers have complained about food poisoning after drinking the milk. Around