: Aurum Gold Mining $($Pty$)$ Ltd is a mid$-$sized gold mining company in

South Africa. The company has been in operation for ten years and has an extensive

portfolio of mineral rights across various provinces. Due to the cyclical nature of the

commodity market, the company has experienced financial fluctuations in recent

years. The CFO, Mr$.$ Dlamini, and the CEO, Mrs$.$ Stevens, have put together

aggressive revenue forecasts and are pursuing new investors to ensure liquidity. The

board has a mix of executive and non$-$executive directors, with a newly appointed

internal audit committee to review financial procedures.

During the most recent audit, the external auditors raised concerns about the valuation

of the company's mining assets, some of which were acquired through recent

acquisitions. There were also issues with stock management at various mine sites,

which led to discrepancies in the financial statements. The auditors also noted

management's reluctance to fully cooperate with providing detailed records for some

expenses, raising questions about internal controls.Aurum Gold Mining$$s financials show significant lease liabilities, and the company's

public interest score exceeds $350$ points, meaning a full audit is required by law.Define and explain the concepts of audit risk and materiality.