Question One Kpodo and Akorli Chattered Accountant, an audit firm, conducted an audit for Ahoofe Company Limited for the year ended 31st December, 2019. During the course of the audit, the following were revealed;

a. Expenditure of GHc 250,000 relating to the extension of the headquarters building has been written off

b. Inventory has been valued at cost. An analytical review indicated that the net realizable value was lower

c. Agbesi, the cashier, is responsible for reconciling the bank statement

d. A new motor vehicle purchased for Ghc500,000 was without authorization

e. The keys to the warehouse is left in the custody of the security officer at post at the close of business every day f. There is no disaster recovery plan. Required

i) As the Partner of the audit firm, prepare a draft engagement letter to the directors of the company

ii) Prepare a draft audit report to the members of the company

iii) Prepare a draft Management/Weakness Letter to the directors of the company