Hi. I need help in this question on finding the business risks in part (a) and how the business risks can lead to material misstatements in part (b)

Part (a) - 15 marks, Part (b) - 15 marks

Section E {Elective} Question 4 {Total: 31] marks] Ariff Mini Market Bhd (AMM) is a mediumsized publiclisted company that operates a chain of grocery stores in Kelantan. You are the audit senior assigned to plan the audit of this client and you are in the nidst of gaining an understanding of the company's objectives and strategies and the related business risks. AMM operates in a highly competitive environment, where major supermarket chains aggressively buying out smaller rivals, and discounting goods below cost in order to increase market share. In order to compete, AMM has had to offer value-added services, such as quantityr discount and loyalty rewards. While these strategies have helped to maintain its customer base, its gross prot margins have dropped by over the years. In an effort to increase prots, AMM has recently added higher margin products such as goumet foods to its range. To date, these items have achieved only limited acceptance among its customers. AMM rents the premises where the stores are located. The tenancy agreement for ve of the rented premises are due to expire prior to the end of the current nancial year ending 31 December 2019. In two cases, the land upon which the premises are situated has been rezoned from commercial use to residential use (i.e_ business-related activities to housing purposes}. The rezoning of land use to residential purposes will increase the value of the land and, because of the benet from higher land value, the owners of these premises are demanding a signicant increase in rent from AMM. AMM is also experiencing difculties with one of the major suppliers, which has withdrawn their bulk purchase discount and reduced payment terms from 45 days to 21 days. Also, AMM has recently commenced legal action against a major supermarket chain for anticompetitive behaviour and predatory pricing. Required: (a) From the case study, identify the business risks faced by Ariff Mini Market Bhd that may impact the nancial performance of the corrpany. (b) For each of the business risk identied in {a} above, explain how it may lead to the risk of material misstatement in the nancial statements