3 You are an audit manager in Webb & Co, a firm of Chartered Certified Accountants. Your audit client, Mulligan Co, designs and manufactures wooden tables and chairs. The business has expanded rapidly in the last two years, since the arrival of Patrick Tiler, an experienced sales and marketing manager. The directors want to secure a loan of $3 million in order to expand operations, following the design of a completely new range of wooden garden furniture. The directors have approached LCT Bank for the loan. The bank’s lending criteria stipulate the following: ‘Loan applications must be accompanied by a detailed business plan, including an analysis of how the finance will be used. LCT Bank need to see that the finance requested is adequate for the proposed business purpose. The business plan must be supported by an assurance opinion on the adequacy of the requested finance.’ The $3 million finance raised will be used as follows: $000 Construction of new factory 1,250 Purchase of new machinery 1,000 Initial supply of timber raw material 250 Advertising and marketing of new product 500 Your firm has agreed to review the business plan and to provide an assurance opinion on the completeness of the finance request. A meeting will be held tomorrow to discuss this assignment. Required: (a) Identify and explain the matters relating to the assurance assignment that should be discussed at the meeting with Mulligan Co. (8 marks)