You have been appointed as audit team leader to audit Badr Hospital, a private hospital, that owns several branches across Oman, for the end of year. The hospital has been operating for the last seven years and has just been your audit firms client this year. The hospital has been doing well in the last four years, earning sufficient amount of income to establish four branches already in the big cities in Oman. Just last year, the hospital established its internal audit department. Previous auditor disclosed that recently the hospital has been having problems in its data base and patient records due to the increase in number of patients and consistent resignations of employees assigned on recording complaining of small salary packages. Your teams initial assessment discovered that total assets of the hospital as of December 31, 2019 amounted to OMR 400 million, total revenue OMR 50 million and for the first time in seven years, they had a net loss amounting to OMR 5 million. Long term debt amounted to OMR 400 million, which was constantly paid late in the last two years. In an attempt to solve their data base problem, last year also, the company has computerized its patient recording system by outsourcing the software from a company abroad. The management is very apprehensive to get the hospital back on its feet and expects your team to report on weaknesses in design and implementation of internal controls on top of the usual audit of financial statements. Required: Discuss matters that you would consider in developing the audit strategy for Badr Hospital.