Question 3 You are audit supervisor of Mus \& Co. and is responsible for allocating staff to the following three audit clients for the year ended 30 September 2020. (i) Blue Berhad is a new audit client. It manufactures and distributes sportswear. The finance director, Paul, sees little value in the audit and put it out to tender last year as a cost cutting exercise. In accordance with the requirements of the invitation to tender, your firm indicated that there would not be an interim audit. (ii) Green Berhad is a long serving client of Mus \& Co. and operates in a national supermarket chain. Your firm provided Green with corporate financial service on obtaining a listing on a stock exchange in 2018. The senior management expects a thorough examination of the company's computerised systems and is also seeking assurance that the annual report will not attract negative comments from the shareholders. (iii) Yellow Berhad has been an audit client since 2013 after your firm advised the management on a successful buyout. Yellow provides satellite tv services. Your firm provides Yellow with technical advice on financial reporting and tax services. Recently, you have been asked to conduct fraud investigation in Yellow. Required: For these 3 audit assignments, highlight: (a) The threat to independence in (i) Blue Berhad (ii) Green Berhad (3 marks) (iii) Yellow Berhad (9 marks) (9 marks) (b) The other professional and practical matters that arise in Blue Berhad. (c) The implications for allocating staff. (5 marks) (4 marks)