Question Discuss the Issue Audit Procedure Impact on the audit report You are the audit manager in a large Public Accounting firm and are reviewing the audit files if issue remains for two of your clients for which the audit fieldwork is complete. The audit seniors have unresolved raised the following issues which you can assume are material: Client 1 1 . (a) Client 1-Gabby Manufacturing Company (Gabby) Gabby's year end is September 30, 2021, however, subsequent to the year end the company's sales ledger has been corrupted by a computer virus. Gabby's finance director was able to produce the financial statements prior to this occurring; however, the audit team has been unable to access the sales ledger to undertake detailed testing of revenue or year-end receivables. All other accounting records are unaffected and there are no backups available for the sales ledger. Gabby's revenue is $15.6 million, its receivables are $3.4 million and profit 2. before tax is $2 million. (b) Client 2-Microservices Ltd. (Microservices) Microservices has been losing customers to its competitors and as a result it has lost significant market share. The cash flow forecast has been reviewed during the audit fieldwork and it shows a significant net cash outflow. Management are confident that further funding can be obtained and so have prepared the financial statements on a going concern basis with no additional disclosures; the audit senior is highly sceptical about this. The prior year Client 2 1. financial statements showed a profit before tax of $1.2 million; however, the current year loss before tax is $4.4 million and the forecast net cash outflow for the next 12 months is $3.2 million. For each of the two issues: Required: For each client: i) Discuss the issue ii) Recommend two procedures the audit team should undertake at the completion stage to try to resolve the issue; and 2. iii) Describe the impact on the audit report if the issue remains unresolved