Quick Solutions Ltd $($QST$)$ is a software development company specialising in smartphone apps. Your

audit firm, Bolton & Associates, has just been appointed as the auditor for the year ended $30$ June

$2024$ and as part of the planning phase you have discovered the following situations:

$1.$ Jennifer Simpson, the audit senior on the QST audit, has just announced her resignation to take a

position with a large multinational company and there is no one available in Bolton & Associates to

replace her. As a result, the remaining audit team members will need to work considerable amounts

of overtime to meet the very tight audit deadline for QST$.$

$2.$ Due to the current rental crisis, QST developed an app last year explaining the rights, processes

available and contacts for residential renters. Due to the outstanding success of the renter$$s app, QST

has decided to develop a new app designed to assist landlords in a similar way, as the regulations

being imposed on landlords are increasing. QST has already hired new staff for the project and spent

heavily on preparing an extensive marketing campaign for the new app.

$3.$ The financial accountant, Alan Higgins, has advised you that as part of his review of recent

expenditure he discovered that a contractor had made fraudulent expense claims amounting to

$$3,000.$ The contractor has repaid the amount and their employment has been terminated.

Explain the impact, if any, on the risk of material misstatement in QST$$s financial report of each of

these situations.