QUESTION 3 (20 MARKS) Kamal Adly is the auditor of Neon Bhd. preparing the final audit for the year ended 30 November 2022 and reviewing the audit working papers. Four issues summarised from the review are as follows: Situation 1 Model XY-7 bicycles are expected to be available until the end of the year on November 30, 2022. This model's price has remained constant at RM2,600. However, its market worth is likely to differ from that figure. The sales made on 2 October 2022, firm executives expect that a buyer, Sungguh Sdn. Bhd., will eventually be found to pay RM4,400 for this last bicycle. Situation 2 Roxette Sdn. Bhd., a new subsidiary of Neon Bhd., has been formed to supply construction materials. The acquisition occurred in October 2022, and Roxette Sdn. Bhd. was declared bankrupt on the first transaction between them in early November 2022. Situation 3 On November 20, 2022, one of the plants in Terengganu was hit by a hurricane, which damaged office cabinets, seats, and tables. Neon Bhd. has estimated that the cost of replacing these damaged items will be RM500,000 on December 5, 2022. This has an impact on Neon Bhd. because they do not have access to government loans or grants. Situation 4 During the year, Neon Bhd. was identified as a defendant in a complaint for damages filed by its principal customer, Luna Bhd., for five years of violation of contract on food tenders. Neon Bhd. received an adverse decision in December 2022, and it was ordered to pay RM1.2 million in damages to Luna Bhd. Required: a. Before Kamal Adly completes the audit, critically analyse Neon Bhd.'s financial statements from the above situations. (12 marks) b. Explain FOUR (4) considerations for subsequent discovery of information that existed at the time the auditor's report was issued. (8 marks)