The following is an excerpt from Economia dated 20 February 2019. PCAOB finds audit deficiencies at Big Four firms Deloitte Deloitte Malaysia failed inspections conducted between October and November 2017 of two audits where it was not the principal auditor. The PCAOB's report said, "One of the deficiencies identified was of such significance that it appeared to the inspection team that the firm had not obtained sufficient appropriate audit evidence to fulfil the objectives of its role in the audit." According to the watchdog, Deloitte failed to perform sufficient procedures to test the design and operating effectiveness of controls over the existence of inventory. (Source: https://economia.icaew.comews/february-2019) REQUIRED: (a) Discuss TWO (2) reasons for the establishment of the above governing body in audit profession. (4 Marks) ( b ) Explain TWO (2) fundamental principles of the MIA By-Laws (on Professional Ethics, Conduct and Practice) which have been violated by the auditors of Deloitte in the above case. (4 Marks) (c) Explain TWO (2) safeguards that should have been taken by the auditors of Deloitte as prescribed by the MIA By-Laws (on Professional Ethics, Conduct and Practice) to avoid such violations in (b). (4 Marks) (d) Explain TWO (2) bases for the claim that can be used by a client if he/she intends to sue Deloitte. (4 Marks) (e) Explain TWO (2) probable defences that might be taken by Deloitte in light of these facts. (4 Marks)