Q1. Ernestina has been operating a small retail store called "Look and pick" selling shoes since 2015.In 2020 she sought to expand her operations due to a rise in demand for shoes .She approached Abigail and Williams, who are her friends and bankers to invest in the business. After some weeks of due diligence, they invested in the business with an expectation of increased returns on their investments. Although, there exist internal controls in the business, it is deficient. In order to ensure transparency and accountability, Abigail insisted that internal Auditor(s) be engaged. Also, Vashti and Associates were engaged as external Auditors. During the first meeting with the external Auditors,Ernestina reiterated that, they were going to pay so much for their services hence, they expected nothing but but absolute assurance, a position the Auditors disagree with. Felicia , one of the internal Auditors, on realising deficiencies in the internal controls suggested to her colleagues that, they develop comprehensive and robust internal controls for management. The other internal Auditors requested for some time to think about the issue in order to make a decision. REQUIRED a). Identify and explain 5 key issues arising from the case. b). Is Ernestina right in demanding absolute assurance from the Auditors?Justify your answer with 5 reasons thoroughly explained. c).Discuss, using 5 thematic areas ,the distinction between internal and external Audit. d).What is your view regarding developing internal controls for management as suggested by Eunice.