SECTIONA [100 MARKS] Read the scenario below and answer the questions that follow. You are the serior parther in a smak-to-medum sized audit im. Your aucit frm has recenty been appoinked as the auditors of Blueberry SA Limited "Groy Pty (Ld)", a recertly lsted company on the JSE Securties Exchange. The yearend of Grey Pty (LTd) is 01 January 2022 . Grey Ply (Ltd) specialises in manufacturing and madeting noble communication, media devices as well as personal compulers. The company casters for both South Atrican and overseas customers. Grey Pty (Lti) acoppts foreign currency from overseas customers, and although it is not widely publicised, prelers to recoive cash from iocal customers, rather than credt card payments or electronic transfers. The head office of the company is stuated in Durban, and it has branches stitated in Port Eliabeth, East London and Cape Town. Crey Pty (Lid) is doing extremely well, and has recenty shown a steady increase in tumover. The grown trom previous years is mainly due to the fact that the compacy has implemented a newa bonus syskem for the managoment stati of the company. The bonus system states that if tumover exceeds the budgeted Lumover by more than 25%, a percentage of the excess furcover will be paid out to management. Management is extremely exchled about this incentive. Due to the recent signifcant growth in the company, the peevious manual accourting system became inadequate for the company, and it was decided duting the year ended 01 January 2022 , to change over to a compulacised system. The computarised accounting package is an 'olf the shell package". None of the stat were tamilar with the package, so it was decided to employ an it manager to oversee the processing of the accounting records, as well as monitaring tre accuracy of the system. The newly appointed it mansger's previous job, was as a markating agent who adventised technology products for various companies. Grey Pty (Lhe) suffered a substantal loss in the previous year as a wesull of a legal daim against the compaty. Big Bang Limsed Lid sued Grey Pty (Lid) tor pasent infringemene. They claim that Grey Pty (Lti) had relied on its patents related to sottaare, video coding. Chipsess, display and antenta for many years. Grey Pty (Las) was eventally taken to court where they bst the lawsult and were forced to pay damages. The payment of damages aso resulted in Grey Poy (tho) tacing a severe liquidey crisis. Upon discussions with manggement, you discovered that the previous auditor resigned as a result of a disagreement with managentent. Management of Grey Pty (Ltd) retused to give your flm permission to contact the previous auditor. Question 1 (30 Marks) You are recuired to describe the factors that you as the auditor should consider and the procedures you should perform prior to acceptance as audior of Grey Pty (Lti) Lid, these will be the pre-engagement activities that reed to be conducted. N.B - your answer should be in relation to the case study that is provided and not generic steps that are involved in the pre-engagement activitiesh