You are the audit senior at T & C Chartered Accountants, an audit firm that was established five years ago. In your firm, you have an audit partner with ten years experience $,$ three audit managers and also four audit senior that include yourself. It is just after you have completed the review of the audit performed by the audit team of your firm on one of your firms clients; High$-$Five Ltd for the financial year ended $31$ June $2021.$ You have discovered the following during the audit:

FIRST DISCOVERY

As you were reviewing the audit documentation and working papers that were prepared by your audit team, you found out that one of the audit member, who happens to be an audit trainee, Bridget was taking clients files home in order to perform some manual checks on them without any supervision, as she claim that the time allocated to her to complete the task is not sufficient. During her interview with the audit partner, Bridget also stated that her work was rarely reviewed by her seniors and the seniors did not provide her with any supervision during the period of the audit. Further investigation also reviewed that Bridget was not supposed to be on attachment as she had some pending modules at her college of study as there was no one within the firm who bothered contacting her college prior to offering her placement.

SECOND DISCOVERY

In order to reduce the audit fees, the client provided your firm with the internal auditors report and also a report from the expert in valuation. These reports were used in a number of occasions by your audit team for a number of audit procedures.

Required:

a$.$ With reference to the First discovery, evaluate the quality control system at T& C Chartered Accountants and discuss the implications of these quality control systems at both the firm and also engagement level. $(10)$

b$.$ Discuss FIVE factors that should be considered by T&C Chartered Accountants audit team before relying on the work that was performed by the clients internal auditors and the valuation expert. $(10)$

c$.$ Evaluate the following risks, with the aid of practical examples;

$($i$)$ Business Risk

$($ii$)$ Audit Risk $(15)$