Melton's Pie Company (MPC) is a privately owned local bakery that has just obtained a loan from the bank to be able to open a second location. As part of the terms of the loan, the bank requires audited financial statements for the year ended December 31, 20X2. It is now March 20x3 and the audit of MPC is currently in progress. The audit senior on the engagement, Ryan, had a family emergency arise and had to leave unexpectedly. The engagement partner has asked you to pick up where the last senior left off. You review the file and note the following: 1 MPC does all of its banking with a single institution. Ryan sent a confirmation to the bank to confirm the amount of cash in all of its accounts. The bank was slow to return the confirmation, so Ryan asked the accountant at MPC to help. The bank returned the confirmation to the accountant and no differences were noted. 2 During the year, MPC purchased a new, high-tech oven, which can bake pies in half the time of the old oven. Ryan noted that the resulting addition to property, plant and equipment was significant. He requested the supporting invoice for the oven but noticed that the amount recorded for the oven was higher than the price showing on the invoice. Ryan enquired with the accountant who provided the calculation he had prepared for the amount to be capitalized, which included shipping and installation costs. 3 In reviewing the accrued liabilities listing, Ryan noted that the legal fee accrual was quite a bit lower than what had been recorded in the previous year. Ryan enquired with management who told him that the accrual was correct, and they had just incurred fewer charges this year. 4 In order to test the completeness of the loan balance outstanding, Ryan obtained the signed loan agreement from management. There were no differences noted between the amount owing per the loan agreement and what the MPC has recorded on its trial balance. Required The engagement partner has asked you to review the audit evidence obtained so far and prepare a memo detailing any issues noted. If additional evidence is required, he has asked that you suggest what is needed and how it can be obtained. Up to 10 marks will be awarded for the discussion of each issue - 5 marks for the issue description, and 5 marks for the recommended audit approach to resolve the issue. Consider if you have sufficient appropriate audit evidence based on the risks identified. Your response should be concise, and no more than 2-3 pages