Karya Agung Bhd. publishes more than 300 fictions and non-fiction titles. The company sells mosts of its books to major retail stores. wwwwww Your firm was just selected as the new auditors for Karya Agung Bhd., and you have been appointed as the audit manager for the engagement based on your prior industry experience. The prior auditors have indicated to you that the change in auditors did not results from any disagreement over accounting or auditing issues. Your preliminary review of the company's financial statement indicates that the account for allowance for return of unsold books has high estimation uncertainty giving rise to a significant risk. Consistent with industry practice, retailers are allowed to return unsold books for full credit. You know from your prior experience with other book publishers that the return rate for individual book titles can range from 30 to 50 percent. The entity develops its allowance for return of unsold books based on internally generated records, that is, it maintains detailed records of all book returns by title. Required: (a) Discuss how you would assess the reliability of the Karya Agung Bhd's records for developing the allowance for return of unsold books. (6 marks) (b) Explain how would you determine the return rate for relatively new titles in Karya Agung, Bhd wwww (5 marks) (C) Determine whether there is any external evidence can be obtained that would provide additional evidence on the reasonableness of the Karya Agung Bhd account. (4 marks)