formative assessments and learning outcomes Assessment 1: Written Assignment (Weighting 40%) Learning outcomes tested: 1, 2, 5 Assignment brief: You work as an auditor of an Audit firm based in the UK. Your audit firm has been approached by ABC Co, for their external audit, which has grown substantially in the last three years and therefore has now reached the audit threshold. As this is for the very first time, an external audit will be performed, the directors of ABC Co need more information as they are unsure about the purpose of an audit. The financial statements of ABC Co are prepared by the directors. ABC Co had applied for a loan at their local bank and had submitted their latest unaudited financial statements. The bank has identified several mistakes within the financial statement and has asked to update it with more information in line with the financial reporting framework and have also requested to have an audited financial statement. The directors now want your firm to prepare the financial statements as they think that your firm has the expertise to do so. The directors have heard in a recent seminar that there are additional advantages to having an external audit. The directors have heard from their legal advisor that the auditors have a right to access company's books, accounts, and vouchers. ABC Co have recently digitalised their working files with the help of a software company. They want to have a paperless environment and therefore the software company has designed a customised software for ABC Co and has given the required training to the staff of ABC Co to manage the system. ABC Co has recently dismissed one of the senior directors who was involved in a fraud of underbilling a major customer. The fraud was initially identified by one of the internal auditors and then a thorough investigation was conducted by a team of senior management. The directors want your audit firm to detect all the errors and fraud if any within their financial statements as they are planning to get their company listed on the stock exchange in the upcoming years. Requirement: ctors of ABC Co based on the above scenario and