Answer All the Questions. You may use any reference material but show the references and adhere to the plagiarism policy. Write your answers in a separate sheet or below each question, as per your convenience. If you are giving answers in a separate page, clearly indicate the question number. 1. A. An auditor has been auditing the financial statements of Crown Apartments in Salalah that has 12 Flats, daily rent for each flat is RO 50. Rents are increased by 20% during Khareef, which runs for 45 days in a year. Apartments are closed for 5 days every year, during normal days (non- Khareef period), for maintenance. Assume that the occupancy rate for all flats is 60% during normal days and 100% during Khareef. Assuming 365 days in the year, what is the expected revenues from the apartments? If the financial statements of the apartments show that the revenues are RO185,000, Is there any possible misstatement in revenues? If so, to what extent? Show your workings. B. Ahmed, as an auditor for Al Saf traders has found that the sales were reported in the Income statement as RO 76,150. Since he is skeptical about the sales assertion and in order to verify and obtain sufficient appropriate audit evidence, he noted down the following information from the accounting records. Al Saf Traders sold 70% of goods on credit during the year. The opening Balance of the Accounts Receivables were OMR 9,562 and the Closing Balance was OMR 12,438. Al Saf Traders have written off OMR 1, 523 Bad debts during the year and given a cash discount of OMR 487 for the customers for earlier payment. Cash collected from Accounts receivables during the year was OMR 48,419. Ahmed finds that there is no material misstatement in the Sales. Do you agree with Ahmed? Show necessary working for your