Question 2. (Max 200 words. may include a little table of max 8 rows} Scenario: You are an audit manager at Hogan & Associates and have been assigned an audit team to inspect the goods. 1. LGL has signicant loans from its bank. The bank has indicated that it is concerned at LGL's ability to meet specic loan covenants, particularly the return on total assets (net prot/total assets] 2. The aged trade accounts receivable listing indicated that the percentage of accounts receivable exceeding 90 days has jumped from 15 % to 315% during the last 12 months. The credit manager has indicated that this is because some of LGL's customers are currently experiencing nancial difculty. Part A}. For each of the scenarios describe briey for each scenario how this matter is a fraud audit risk factor in relation to LGL's nancial report. [8 marks} (As a guide, your answer should be minimum of 10 rows to adequately address the question). Part B). Management of your client Precision Components Ltd inform you that during the year the internal auditors discovered that a substantial amount of inventory had disappeared from one of its small batch number of local managers have subsequently resigned although there were no prosecutions. The losses amounted to 3% of the company's operating prot. Required: How would the information provided will affect your audit strategy? Please explain. {7" marks] (As a guide, your answer should be minimum of 3 rows to adequately address the question}