Answer the following:

Part B (5 marks] Sam is a director of a company currently undergoing an audit. The auditors have informed Sam that his company has some issues with accounting policies and accounting estimates. For each of the scenarios given below you have to advise Sam whether it is a change in accounting policy or a change in accounting estimate. Provide brief reasons. 1. The useful life of depreciable plant is determined as being 5 years. 2. Sam's company depreciates non-current assets. 3. Sam's company uses straight-line depreciation. 4. Sam's company determines that it will calculate its warranty provision using past experience of products returned for repair under warranty. 5. The current year's warranty provision is calculated by providing for 3% of current year sales, based on last year's warranty claimed amounting to 3% of sales. Part C [2 marks] Joe is a director in one of the top finance companies. In a recent audit, auditors informed Joe that last year's financials contained an error and need to be corrected. As a director with limited accounting background/knowledge Joe is a bit concerned. Advise Joe on what the auditors mean and how the error should be corrected