Your client, BE Limited {BE}, operates brewery and bottling plants in various locations aroundthe world. Each country has a Regional Processing Centre {RFC}, which acts as the accountingand administrative centre for that country. Each country prepares ?nancial data and summarisesthe information into a standardised package format. This package is submitted to head of?ce inPerth on a monthly basis. Material balance sheet items consist of inventories, trade receivables,trade payables, brand names and property, plant and equipment. It is February 2014, you arecurrently planning the June 2014 audit and have the following information. Each situation is tobe considered independently: A Civil unrest in Country X makes it impossible for branch auditors to visit the RFC to carry out auditprocedures on your behalf. Due to a communications blackout, you are unable to ascertain whether theRFC is still functional. Country X contributes approximately 3 per cent of 82's turnover. B In past years, head office has maintained tight control over the operations of 32. However, in keeping1uvith current Total Quality Management principles, many functions formerly performed at head office arenow performed by each FiPC. Management has expressed some concern at the quality of the monthlyreporting packages which it has been receiving, particularly those from the South Pacific region. C Senior management has been engaged in high-level discussions with a major competitor, L Limited, withthe view to establishing a ioint venture operation in the UK. The joint venture agreement, signed in earlyFebruary, states in part: