Edit View Go Window Help Upload Oncampus CO5118 Final Exam SP22 2021.pdf (page 4 of 6) ~ Q Search (b) Discuss the main considerations that will determine whether she is liable in this situation. [5 Marks] [Total for question - 10 marks]le Edit View Go Window Help Upload Oncampus CO5118 Final Exam SP22 2021.pdf (page 4 of 6) Q Search Question 3 In a management letter to Hive Company Lid, Beth the company's external auditor informed management of its deficiencies in the control of inventory. She elaborated on how the deficiencies could result in a significant misstatement of inventory by the failure to recognise the existence of obsolete items. In addition, Beth made specific recommendations on how to improve the internal control structure and save clerical time by installing a computer system for the company's perpetual records. Management accepted the recommendation and installed the system under Beth's direction. For several months the system worked beautifully, but unforeseen problems developed when a master file was erased. The cost of reproducing and processing the inventory records to correct the misstatement was significant and management decided to scrap the entire project. The company sued Beth for failure to use adequate professional judgement in making the recommendation. REQUIRED (a) What is Beth's legal and professional responsibility in the issuance of a management letter? [5 marks] Dis 24 44 # 6 9 O W R Y U O P A D mn G H K Z X C B N M