TPG Ltd. operates in the electricals and telecommunications sector to provide electrical products and supply network services. It sells the tools and provides networks to a large group of regular customers. In the past year, TPG Ltd has had trouble with customers who do not pay their accounts on time. Despite instructing the sales team not to make sales to customers before their creditworthiness has been assessed, sales are still being made to new customers before their limits have been set and to existing customers beyond their credit limit. Also, the economic recession has started to affect its customers. TPG'S management is concerned about the possibility of increasing bad debts. Required a. What sort of prevent control could be used to deal with the problems faced by TPG Ltd.? Explain how the control would work. b. Assume the prevent control is implemented, and during this year there have been no sales to customers that have taken any customer beyond its credit limit. What are two possible explanations for this that the auditor must consider? c. If an auditor finds two sales transactions during the year that are in excess of a customer's credit limit at the time of the sale, what conclusion would the auditor draw from this evidence? What other evidence could the auditor Gonsider before concluding that the prevent control has failed? Provide supporting ASA(s) or other references if necessary. TPG Ltd. operates in the electricals and telecommunications sector to provide electrical products and supply network services. It sells the tools and provides networks to a large group of regular customers. In the past year, TPG Ltd has had trouble with customers who do not pay their accounts on time. Despite instructing the sales team not to make sales to customers before their creditworthiness has been assessed, sales are still being made to new customers before their limits have been set and to existing customers beyond their credit limit. Also, the economic recession has started to affect its customers. TPG'S management is concerned about the possibility of increasing bad debts. Required a. What sort of prevent control could be used to deal with the problems faced by TPG Ltd.? Explain how the control would work. b. Assume the prevent control is implemented, and during this year there have been no sales to customers that have taken any customer beyond its credit limit. What are two possible explanations for this that the auditor must consider? c. If an auditor finds two sales transactions during the year that are in excess of a customer's credit limit at the time of the sale, what conclusion would the auditor draw from this evidence? What other evidence could the auditor Gonsider before concluding that the prevent control has failed? Provide supporting ASA(s) or other references if necessary