Your firm has been the auditor of Bright Products, a listed company, for a number of years. The engagement partner has asked you to describe the matters you would consider when planning the audit for the year with a year end date on 31 January. During a recent visit to the company you obtained the following information: 1. The management accounts for the ten months to 30 November show sales of $130 million and profit before tax of $4 million. Assume sales and profits accrue evenly throughout the year. In previous year, Bright Products had sales of $110 million and profit before tax of $8 million. 2. The company installed a new computerized inventory control system which has operated from 1 June. As the inventory control system records inventory movements and current inventory quantities, the company is proposing: i. To use the inventory quantities on the computer to value the inventory at the year-end; and il. Not to carry out an inventory count at the year-end. 3. You are aware that there have been reliability problems with the company's products, which have resulted in legal claims being brought against the company by customers, and customers' refusing to pay for the products. 4. The sales increase in the ten months to 30 November over the previous year has been achieved by attracting new customers and by offering extended credit. The new credit arrangements allow customers three months credit before their debt becomes overdue, rather than the one month credit period allowed previously. As a result of this change, trade receivable age has increased from 1.6 to 4.1 months. 5. The chief financial officer and purchasing manager were dismissed on 15 August. A replacement purchasing manager has been appointed but it is not expected that a new chief financial officer will be appointed before the year-end. The chief accountant will be responsible for preparing the financial statements for audit. Discussion Describe the reasons why it is important that auditc should plan their audit