Question on Audit & Assurance Question 1) The firm of Bureck & Co, where you work as an audit senior, is a Chartered Cer

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Question on Audit & Assurance
Question 1)
The firm of Bureck & Co, where you work as an audit senior, is a Chartered Certified Accountants. After the senior on the engagement falls ill, you are temporarily appointed as audit senior to the audit of Sultana Co, a scaffolding supplier to the construction industry. Currently, you and the junior members of your audit team are analysing the audit files and discussing the audit as it nears completion for the year ending 30 September 2021 for Sultana Co. The draught financial accounts of Sultana Co. show revenues of £12.5 million, a net profit of £400,000, and total assets of £78 million.
After going through the audit files, you've discovered the following information.
Cherry Co, a major customer with whom Sultana Co has several substantial contracts, declared bankruptcy after the end of the year. Efforts to wind down the business have already begun. There are administrators who believe that the corporation can pay about 25 percent of the debt to Sultana Co. This customer has a trade receivable of £300,000 on Sultana Co's financial statement. The audit's management has also been questioned by a member of the audit team who is a junior. The following is what the junior said.
‘Prior to being assigned to the audit team of Sultana Co., I had only worked on two other projects' Despite my expectations, there was no pre-audit meeting where the partner and other senior auditors would discuss the audit. Another problem is that a senior audit manager has been in charge while the audit manager has been on vacation for three weeks and has been replaced. As a result of this, the senior could not always be contacted.'
"I was tasked with auditing the goodwill resulting from an acquisition made during the year." I also participated in the inventory audit and count, which was quite complicated because Sultana Co has a substantial amount of ongoing projects. I endeavoured to be as helpful as possible during the count and assisted the client's staff in counting a portion of the raw materials. As I had participated in the inventory count, the audit senior requested that I question the finance director about the adequacy of the provision against inventory, which the senior felt was grossly understated.
'Finally, we discovered that we were out of time to complete our audit procedures. As a means of saving time, the audit senior advised that we reduce the sample sizes used in our tests. When conducting audit sampling, he also suggested that we select items that would be easy when carrying out audit sampling'
Required:
a) comment on the issues to be taken into consideration as well as an explanation of the audit evidence you can expect to find when reviewing Cherry Co's trade receivable file is required. (6marks)
(b) Analyze the issues of the audit junior on the audit management of Sultana Co. (14 marks)