Pluto Limited is engaged in the manufacturing and distribution of furniture. After Covid, as the number of people working from home has gone up,…

Pluto Limited is engaged in the manufacturing and distribution of furniture. After Covid, as the number of people working from home has gone up, this customisable range home office furniture has gained lot of importance. They were able to perform very well over the years and the same has been reflected in their financial statements. During the year 2023-24, M/s Saha and Associates was reappointed as the auditor. The new engagement team has CA Saha (partner) and five article assistants. Given the large volume of transactions, the partner instructed the article assistants to review the financial statements and auditor's report from the previous year, 2022-23, to gain a thorough understanding. While reviewing the summary page, one of the article Kabir noticed that few points were under discussion with the partner before finalising the audit: The team verified the following points with respect to employee benefit expenses: The employee benefit expenses recorded in the books were actually incurred during the relevant period.The expenses in respect of all personnel have been accounted for.The expenses recognised during the period are pertaining to the current accounting period. It was also noted that dividend to equity shareholders for the year 2022-23, was declared on 15.04.2023 and was recognised as liability in the year 2022-23. Another article Krish noticed that debtors constitute a major component of the company's financial statements. As part of audit procedure, the auditor requested the client to obtain external confirmations from the parties. For this, a list of all the debtors were obtained and a random sampling was performed by the auditor. The client directly obtained the selected debtor confirmations from the customers on time. Krish also observed addition in the assets amounting 50 lakhs during the year supported by sufficient audit evidence. However, upon scrutiny, it was found that some of the invoices were not in the name of the company. Further, Cash and cash equivalents were classified as balances with banks, cheques and drafts on hand, cash on hand and earmarked balances with banks (e.g. unpaid dividend) Based on above, answer the following questions: