You are the auditor-in-charge for the audit of Auto-Pilot Solutions (APS), a Christchurch manufacturer of driver-less vehicle technology. All products are sold directly to customers overseas. The industry is highly competitive and fast-moving due to continual changes in technology. APS was set up 10 years ago but for the last three years has been making only small profits. APS has a bank loan that is contingent on it producing at least break-even results. You have noted the following independent events whilst planning the 31 December 2021 audit: (1) Due to increased competitive pressures, APS has recently moved the manufacture of most of its electronic circuit boards (ECBs) to Thailand. Around 10% of the components for the ECBs are sourced in New Zealand and sent to Thailand to be transformed into finished ECBs. The remaining components are sourced from suppliers in South East Asia. All manufactured output is then returned to New Zealand where they become inputs into the assembly of finished products. APS saves around 30% in costs compared to the equivalent New Zealand-made ECB. However, the manufacturing process takes longer and, on a few occasions, late delivery from Thailand has resulted in lost sales. (2) For most of the