You are the audit supervisor of Azuma Audit firm and currently planning the audit of an existing client, SWOW Ltd. whose year-end was 30 April 2019. SWOW is a pharmaceutical company, which manufactures and supplies a wide range of medical supplies. The draft financial statements show revenue of S35-6 million and profit before tax of $5-9 million. SWOW's previous finance director left the company in December 2018 after it was discovered that he had been claiming fraudulent expenses from the company for a significant period of time. A new finance director was appointed in January 2019 who was previously a financial controller of a bank, and he has expressed surprise that Azuma audit firm had not uncovered the fraud during last year's audit. During the year SWOW has spent S1-8 million on developing several new products. These projects are at different stages of development and the draft financial statements show the full amount of $1.8 million within intangible assets. In order to fund this development, S2-0 million was borrowed from the bank and is due for repayment over a ten-year period. The bank has attached minimum profit targets as part of the loan covenants. The new finance director has informed the audit partner that since the year end there has been an increased number of sales returns and that in the month of May over 50-5 million of goods sold in April were returned. Azuma Audit firm attended the year-end inventory count at Sycamore's warehouse. The auditor present raised concerns that during the count there were movements of goods in and out the warehouse and this process did not seem well controlled. During the year, a review of plant and equipment in the factory was undertaken and surplus plant was sold, resulting in a profit on disposal of S210,000 Required: a) State Azuma Audit Firm's responsibilities in relation to the prevention and detection of fraud and error (5 marks) b) Describe SIX audit risks in planning the audit of SWOW. (15 marks) c) Identify and briefly explain FOUR financial statement assertions relevant to classes of transactions and events for the year under audit. (5 marks) d) Prepare an outline of audit procedures that will be relevant in the audit of SWoW financial statement (15 marks)