The following is the information obtained during the audit activities in Byoo Bhd and its subsidiaries company for the financial year ended 31 March 2021. 1. During the audit, the team discovers that one of the five development projects, valued at RM780,000 and included as intangible assets, does not meet the criteria for capitalisation. Mr. Tung, the finance director does not intend to change the accounting treatment adopted as he considers this an immaterial amount. 2. During the audit of highway construction in Kuantan, it was an error in the valuation of work in progress, as a number of the assumptions contain out-of-date information. Mr. Ahmad Syawal, chairman of the board committee has indicated that they do not wish to amend the financial statements. 3. After the date of the financial statements, as part of the subsequent event audit procedures. it was discovered that one of the client's two uninsured plants was damaged due to a recent fire. The newspapers described the event in detail but the financial statements and appended notes prepared by the client did not disclose the loss caused by the fire. 4. In the current year, for the first time, the current ratio is below 3:1, which is below the minimum requirement specified for a major loan agreement in Ambank Bhd. This ratio value could represent doubt about the ability of May Bhd., one of the subsidiaries to continue in operation for the next year. 5. The financial controller, Mr. Shamsul will not allow the auditor of Byoo Bhd. to confirm the accounts receivable balance from two of its major customers. The amount of the accounts receivable is material in relation to Syoss Bhd's financial statements. The auditor is unable to satisfy himself with regards to the accounts receivable balance by other procedures of this related party transaction. Required: b. Critically examine the subsequent events and their effects on the financial statement of Byoo Bhd. and its subsidiaries as of 31 March 2021. (25 marks) Describe the risk associated and audit procedures with the related party transaction in Byoo Bhd. and its subsidiaries as of 31 March 2021. (15 marks)