Raavi & Co., a Chartered Accountants firm, has been appointed as auditor of XYZ Ltd., a prospective new client. CA Sukanya, one of the firm's…

Raavi & Co., a Chartered Accountants firm, has been appointed as auditor of XYZ Ltd., a prospective new client. CA Sukanya, one of the firm's partner, is handling the potential client. During a meeting with the company's officers, she discovers that Sushant, the company's CFO, is a former classmate. They had both started their Chartered Accountancy (CA) journey together, but Sushant left the program halfway due to repeated failures and later pursued an MBA in finance from a prestigious institution. During initial discussions, the company reveals plans to launch a new service in the "weather-forecasting" sector. These services will be available on website of company, and users can access micro weather information for a fee. The company requests that the audit firm be visibly associated with their marketing efforts. Assuming the firm accepts the offer, they send a letter to the previous auditor, Royal & Co., requesting any professional reasons that might prevent them from taking on the assignment. However, Royal & Co. does not respond to the inquiry. While planning the audit, Raavi & Co. also learn that the company has acquired all shares of another company, which requires the financial statements of both companies to be consolidated and audited, according to applicable laws. Despite this information, Raavi & Co. fails to advise the client on the necessity of auditing the consolidated financial statements. Firm is also reviewing internal controls of XYZ Ltd. He verifies following things: Are tenders called before placing orders?Are the purchases made on the basis of a written order?Is the purchase order form standardised?Are purchase order forms pre-numbered? Based on the above facts, answer the following: