You are an Audit Senior on a client called We Love Animals Limited $($WLA$)$ with afinancial year ending $31$ August $2024.$ WLA is a listed company registered on theJohannesburg Stock Exchange $($JSE$).$ WLA is a manufacturer that supplies pet shopswith pet food and accessories.As an Audit Senior, you reviewed the working paper of the first$-$year Audit Trainee thatrelated to the legal claims.Working paper for legal claimsClient: Fish Limited. Year$-$end: $31$ August $2024$Ref:Prepared by: DA Date prepared:Legal claims working paperProcedures performed: Inquire with management about legal claims. Request a legal claims schedule. Inspect meeting minutes for any legal claims.Findings: Inquired with management, and there is a material legal claim against thecompany for pet food poisoning where many animals died because of itsconsumption. Legal claim schedule obtained and placed in the audit file. Meeting minutes of the employees were reviewed, and no mention wasmade of the current lawsuit against the company$\mathrm{.}6$ HAUD$332-1-$Jul$-$Dec$2024-$FA$1-$TA$-$V$4-16072024$Payroll outsourcingWLA has a substantial workforce comprising employees across variousmanufacturing, sales, distribution, and administration departments. Given thecomplexity and scale of its operations, WLA has opted to outsource its payrollprocessing to a reputable payroll service provider, Payroll Expert Solutions $($Pty$)$ Ltd$.$Payroll outsourcing arrangement:WLA entered a contractual agreement with Payroll Expert Solutions $($Pty$)$ Ltd tooutsource its payroll processing functions. The outsourcing agreement outlines thescope of services provided by the payroll service provider, including: Calculation and processing of employee salaries, wages, and bonuses. Administration of employee benefits, such as healthcare plans, retirementcontributions, and leave accruals. Withholding and remittance of payroll taxes, including income tax,Unemployment Insurance Fund $($UIF$),$ and Pay As You Earn $($PAYE$).$ Compliance with regulatory requirements, including tax laws, labour laws, andindustry$-$specific regulations. Provision of payroll reports and data analytics to support WLAs financialreporting and decision$-$making processes. Maintain confidentiality and data security measures per the Protection ofPersonal Information Act $($POPIA$)$ to protect employee information.Audit evidenceDuring the audit at WLA, you were provided with the following audit evidence for tradedebtors: Printed bank statements received by WLAs Financial Manager to determineamounts received from the trade debtor during the subsequent payment testing. You sent a debtors circulation with permission from WLA to a sample of debtorsto confirm their trade debtors balance as at the end of the year$\mathrm{.}7$ HAUD$332-1-$Jul$-$Dec$2024-$FA$1-$TA$-$V$4-16072024$ A sample of debtors was selected, and WLAs Financial Manager provided theoutstanding sales tax invoices for the debtors.REQUIRED:$2\mathrm{.}1$ Analyse the working paper and discuss the weaknesses in audit documentationper ISA $230.(10$ marks$)2\mathrm{.}2$ Describe the correct audit procedures that you will perform in the legal claimworking paper.$(10$ marks$)2\mathrm{.}3$ Discuss the auditor's key considerations for auditing the outsourced payrollservices.$(10$ marks$)2\mathrm{.}4$ Identify and explain from the audit evidence obtained for the trade debtors if thesupporting documents are reliable. Provide reasons as to why or why not.$(5$ marks$)$