Duma & Duma Inc., a medium$-$sized audit firm, has recently been appointed as the external auditor of

Elegant Interiors Ltd$,$ a company that designs and manufactures luxury home and office furniture. The

company$$s financial year ends on $28$ February $2025.$ This year, Elegant Interiors implemented a new, cloudbased

ERP system that automates inventory management, sales, payroll, and financial reporting.

The directors are concerned about the accuracy and completeness of financial data following the ERP

implementation. The audit partner has asked the team to understand how the new system affects internal

controls and financial reporting.

$3\mathrm{.}1$ Based on the case study, describe the main stages of the audit process that Duma & Duma Inc. would

follow when auditing Elegant Interiors Ltd for the $2025$ financial year