(a) During its financial year, your audit client Paw Pty Ltd lost two key personnel, was involved in legal disputes, and had substantial fall in revenue and cash flows. It is concluded that Paw is not a going concern. Identify two appropriate audit procedures for this matter in relation to the financial report. (b) Paka, your client, is being sued by Denners Ltd due to being sold faulty packaging. Denners is a food manufacturer and has claimed that, as a result of unhygienic packaging supplied by Paka, it had to re-supply some products to its customers, pay them compensation for their losses and dispose of other products that were unfit for sale. Denners has made a claim against Paka for $1 200 000 (5% of Pakas revenue). Theboard of Paka has indicated they do not intend to recognise any amounts payable to Denners as these will be recouped from one of its suppliers. (i) Identify and explain the type of the above subsequent event, and how it should be treated in the financial report. (ii) What further evidence would you seek in relation to the matter? (iii) What audit opinion would be appropriate if the directors of Paka refuse to follow the auditors recommendations regarding the above event? Justify your answer