Question: Required: i) Explain a different between an audit risk and audit failure. (4 marks) ii) Mr. Harith is a third party beneficiary of the contract

Required: i) Explain a different between an audit risk and audit failure. (4 marks) ii) Mr. Harith is a third party beneficiary of the contract Wong & Muthu made with Textile Cotton. Discuss the provision that can be used by Mr. Harith to sue Wong & Muthu. (5 marks) iii) Discuss whether the auditors are guilty of professional negligence in not detecting the fraud. (6 marks)

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