QUESTION 3 (A) Dinpaye Limited processes and packages portable water for local consumption. The factory is situated in a

[answerhappygod]

QUESTION 3 (A) Dinpaye Limited processes and packages portable
water for local consumption. The factory is situated in a valley in
a first-class residential area of the city. A major road used by
most residents runs in front of the factory. Often, this road is
flooded with spill-over of water from the factory, thus hindering
vehicular and pedestrian movement. Management of the company on
such occasions uses the services of a contractor to pump out the
water from the road. This situation contravenes the provisions of
the Factories, Offices and Shops Act 1970, Act 328. Dinpaye Limited
has engaged Eagle-Lion & Associates as the auditors. In their
preliminary tour of the factory the senior partners became aware of
the flooding situation in the area. Back in the office the senior
partners consulted ISA 250 “Consideration of laws and regulations
in an audit of financial statements” for guidance on the auditor’s
responsibility to consider laws and regulations in an audit of
financial statements before carrying out the audit assignment.
Required:
(i) State examples of the possible type of information that
might have come to the auditors’ attention that might indicate
non-compliance with the Factories, Offices and Shops Act.
(ii) What the auditors should consider when evaluating the
possible effect on the financial statements for non-compliance with
the law according to ISA 250.