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QUESTION 5 Described below are situations which have arisen at four unrelated clients of your firm. Desa Aman Bhd (Desa) Your firm is performing

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QUESTION 5 Described below are situations which have arisen at four unrelated clients of your firm. Desa Aman Bhd (Desa) Your firm is performing an engagement to examine and provide assurance on Desa's cash flow forecast for the three years ending 30 September 2025. The forecast has been prepared by Desa's directors in support of a loan application. Desa's bank requires the forecast to be examined and reported on by independent accountants. The cash flow forecast has been prepared on the assumption that revenue will grow by 8% per annum (pa). Your firm believes this is highly unrealistic because current revenue growth for Desa and the industry in which it operates is 2% pa and 3% pa respectively.

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