UESTION 3 Your rm was appointed as an auditor to Johnson Fitness $511; $1941, a tness equipment manufacturer. To assist in the planning of the audit, the audit manager obtained knowledge about Fitness 551;; Maud tness equipment industry from the company nancial statement for the year ended 31 May 2020. In the course of his inquiries, he was informed that the company sold only on credit term and had incurred several material bad debts during the year. These had occurred due to fundamental weaknesses in the sales and trade debtors' system. a. Explain THREE (3) sources from which the audit manager may have obtained knowledge about Johnson Fitness maladand the tness equipment industry, prior to the planning of the audit. (6 Marks) b. Describe THREE {3) substantive procedures that your rm should carry out to verify the bad debts gures as reported in the nancial statements of Johnson Fitness 551;; mt'or the year ended 31 May 2020. You are required to consider bad debts relating only to trading. (6 Marks) 1:. WFOUR (4) intemal control procedures that should exist in the sales and trade debtors' system of Johnson Fitness WBhd. (8 Marks)