You are the auditor in-charge of the annual audit of Muscat Insurance Company (or MIC) for the year ended December 31, 2019. MIC is the leading insurance company in Oman and enjoys a good reputation in the business community. As this is the first time your audit firm will be auditing the company, you communicated with the previous auditor as part of understanding the business. Your communication with previous auditors revealed something that you didnt expect to discover. The previous auditors revealed that the company has an unpaid tax amounting to OMR 3 million. Though it was disclosed in the books as tax in arrears, there is no indication that the company has attempted to pay it. You have also found out in your initial review that MIC has recently purchased a new software that will enable the customers to access their insurance accounts through the internet. Because the directors are eager to use the software to attract more customers, the software has been rolled out already for use by the customers even though it was not tested by the companys information technology (IT) department yet for security purposes. As surprise discoveries seem not to stop, you have also heard from your friends, who were customers of MIC, that there were insurance claims from customers which have not been paid by the company. Some of the claims were as old as five years ago. The management expects to receive a report on the weaknesses on the design and implementation of internal controls and some business consultative advice on top of the usual audit of financial statements. Required: Discuss matters that you would consider in developing the audit strategy for Muscat Insurance Company.