Wedian Wadi Adai Trading company, dealing in the manufacture and suppliers of high quality polyester textiles and textile products from natural and synthetic materials. The company is having high market potential that the demand is driven by the domestic apparel industry and consumer demand for home furnishing. The company have an agreement with many suppliers for the material procurement and placing order on continuous basis as there is high demand for the product. Since the company listed in MSM securities market, they have to publish the audited financial statement to the shareholders. The company approached an accounting and auditing firm to audit its financial information's. During the course of audit, it has been observed that;- (i) The material purchased from the supplier were not recorded in stock register (ii) Raw material ordered to the supplier but the material is not delivered. The company made payment to the supplier. (iii) Certain expenses paid in cash against initial vouchers prepared by the cashier show a tendency to increase without any known special reason (iv) Fictitious return inwards shows that the goods have been returned by the buyer which in fact have never been returned but the cash paid to the buyer. Questions: (a) If you are an independent auditor, to state the principal ways in which fraud could have occurred in each of the above circumstances? (5 Marks) (b) How will you proceed your audit process for the above circumstances