After a number of people living close to one of South's stores became seriously ill, the source of the illness was traced back to meat the customers had purchased from South. Legal proceedings were commenced against South by a number of customers during the financial year, demanding $1m in compensation. 5. You plan to review the legal correspondence relating to the claims made by customers to whom South sold contaminated meat. Which of the following are valid objectives of this audit procedure? (1) To determine whether South’s reputation will have been damaged within the local area (2) To confirm whether there are deficiencies in South’s internal controls relating to food hygiene (3) To assess whether a provision for customer compensation is required in South’s financial statements (4) To determine whether disclosure of the nature and financial effect of the legal claim is required in South’s financial statements