Shree Foods Private Ltd., engaged in the production and distribution of packaged snacks. To increase sales, it introduced volume discounts and…

Shree Foods Private Ltd., engaged in the production and distribution of packaged snacks. To increase sales, it introduced volume discounts and extended credit facilities to distributors. The statutory audit of Shree Foods Private Ltd. was assigned to CA Vivek. While planning the audit programme, CA Vivek first obtained an understanding of the company's internal control system and evaluated whether such controls were actually operating effectively. He prepared a detailed audit plan specifying procedures such as: Testing a sample of 100 invoices out of 1200 revenue transactions.Reviewing discount approvals and credit notes. During the audit, the following issues were noted: (i) Some invoices with incorrect revenue amounts were not included in the selected sample and hence misstatements remained undetected. (ii) One audit team member misunderstood the bulk discount policy and treated overstated revenue as valid. (iii) While testing invoices and trade receivables, CA Vivek identified misstatement in some transactions. He needs to project these misstatements to the population to assess their overall impact. (iv) Management refused to provide requested written representation required by CA Vivek relating to valuation of one of the major Trade Receivables. (v) Additionally, while verifying trade receivables, CA Vivek performed several other audit procedures such as -(a) Selecting few invoices from the accounts receivables ageing report and compare them with supporting documentation to see if they billed with the correct amounts, to the correct customer and on the correct dates. (b) Matching sales invoices issued around the reporting date with the related shipping/dispatch records to ensure receivables are recorded in the correct accounting period. (c) Reviewing the ageing analysis of receivables to identify long-outstanding balances and evaluate adequacy of provision of doubtful debts. (d) Sending balance confirmation requests to selected distributors asking them to confirm the outstanding receivable balances as at the reporting date. Based on the above facts, answer the following questions: (1 to 5)