Part 2 Examination – Paper 2.6(INT)
Audit and Internal Review (International Stream) June 2007 Answers
1 (a) Ethical threats Self review threat
If Lime & Co provides audit and other professional services to Green Co, then they will be preparing the financial statements and also auditing those financial statements. This will provide a self-review threat to Lime & Co as they will be auditing their own work. Lime & Co would be advised to tender only for the audit work.
Management threat
There is a risk that Lime & Co will make decisions that the managers of Green Co should make (for example which accounting policies should apply to the financial statements). It is possible that these type of decisions have been made before, on an informal basis, as the partners in Lime & Co already know and give advice to the managers of Green Co.
Advocacy threat
This threat arises because Lime & Co may be asked to present details of Green Co’s financial statements and profit forecasts in court to support its application to stop Black Co growing genetically modified (GM) crops. Lime & Co may be seen to support their client in court, which may limit their independence in relation to the audit work.
Familiarity threat
You have been friends with the managers of Green Co for some time. This means that you may not question the decisions of the managers due to this close personal relationship. As a partner in Lime & Co you will in effect not be independent from your client.
Fee income
Acceptance of audit and professional services work from Green Co, will result in an increase in fee income. To retain independence, Green Co need to ensure that fee income does not exceed 10% of the total practice income.
Association threat
The managers of Green Co, while not being criminals, they appear to lack integrity in their business affairs. The partners in Lime & Co need to decide whether they want to be professionally associated with Green Co; any criminal activity in the future may have an adverse effect on Lime & Co’s reputation and image. Specifically Lime & Co will not want to be seen to be associated with or advising a firm which is breaking the law.
Cease trading – payment of fees
The farm may lose organic certification if the genetically modified crops continue to be grown next to Green Co’s farm. There is a risk that Lime & Co may not be paid for services provided should Green Co cease trading.
(b) (i) Going concern
IAS 1 Presentation of Financial Statements defines the going concern concept as the assumption that the enterprise will continue in operational existence for the foreseeable future.
The farm may lose organic certification if the genetically modified crops continue to be grown next to Green Co’s farm. This means that Green Co may not be a going concern.
An entity will normally use the going concern basis unless:
– It is being liquidated or has ceased trading, or
– The directors have no realistic alternative than to liquidate the company or to cease trading.
(ii) Responsibilities
The directors’ responsibilities regarding going concern is to prepare the financial statements of an entity ensuring that the going concern basis is reasonable. They may also prepare cash and/or profit forecasts for at least 12 months into the future to demonstrate that the entity is likely to continue to trade during this time.
(c) Audit procedures
In the case of Green Co, audit procedures on going concern will include:
– Obtaining cash and profit forecasts from the directors. Ensure that these have been properly prepared (for example are arithmetically correct) and show that Green will continue trading. Appropriate adjustments should have been made for the decrease in sales resulting from contamination of Green Co’s farm.
– Review the order books for Green Co to determine the level of future sales.
– Contacting Green Co’s lawyers to determine the progress, if any, on the court case against Black Co.
– Review the financial status of Green Co during the audit to identify other indicators of a going concern problem such as failure to repay loans or decrease in sales.
– Review correspondence, if any, with the organic certification authority to determine whether Green Co’s organic status has been withdrawn.
– Contacting Green Co’s bank to ascertain whether any loan or overdraft agreements are due for renewal and whether these will be renewed.
– Obtaining written representation from the directors confirming that they are not aware of any circumstances other than those evaluated by the auditor, so they expect Green Co to continue as a going concern.
2 (a) Factors affecting sufficiency Assessment of inherent risk
As inherent risk increases, then more audit evidence will be required to reduce detection risk.
Materiality of the item
A decrease in materiality means that more audit evidence will be required to ensure that no material error has occurred.
Nature of the accounting and control systems
Where the accounting and control systems are poor then more audit evidence is necessary as less reliance can be placed on those systems.
Control risk
Determine the extent to which the directors have implemented a sound system of internal control; poor internal controls increase control risk, decreasing reliance that can be placed on those controls.
Experience from previous audits
Good experience from previous audits will decrease the amount of evidence required as the auditor can place reliance on previous review of clients’ systems.
Result of audit procedures
Where the results of different audit procedures agree with each other then overall less evidence is needed – overall the evidence is more persuasive; however, where results are in conflict then more evidence is required.
Quality of information available
Some sources of audit evidence are more reliable than others – meaning less evidence is needed when relying on those sources for example, documentary evidence is more reliable than oral evidence.
(b) (i) Trade payables
Audit procedure Reason for procedure
Cast the list of trade payables and agree the total to the To confirm that the list is complete, is accurately stated payables ledger and then to the general ledger. in the general ledger and contains no unusual or
reconciling items which must be investigated.
Test, on a sample basis that payables on the list agree to To confirm that the list agrees to the payables ledger. the individual ledger balance and from the ledger to the list.
Compare trade payables individually and in total to prior To explain changes in the balances. For example, the year balances and explain any unusual changes. increase in payables could indicate cash flow problems
and Metcalf & Co is delaying payment to suppliers in response to this.
Comparison may also indicate lack of completeness of the list where payables balances have been omitted.
Select a sample of individual payables accounts for testing, Material balances should always be tested to ensure focusing on material balances, zero balances and a sample correctness and test a large amount of payables by
of other items. value. Some zero balances are tested to ensure that
Audit procedure Reason for procedure
Select population from purchase invoices received after Confirm completeness of recording of purchase invoices. the year-end. Trace to evidence of goods receipt and where
goods received prior year-end, ensure invoice amount included in purchase accrual.
Obtain year-end supplier statements (either from Metcalf & Agree the payables balance to independent third party Co or direct from the individual supplier via a circularisation evidence to confirm accuracy, completeness and letter). Agree the balance on the statement to the individual existence of the ledger balance.
account in Metcalf & Co’s payables ledger. Where necessary, reconcile the balances taking into account cash and invoices in transit.
Take a sample of purchase invoices recorded in the To ensure that liabilities recorded in the PDB are purchase day book (PDB) just prior to the year end and represented by goods received during that year, and trace to goods received note (GRN), ensuring that the goods recorded in the correct period (cut-off testing). were received prior to the end of the year.
Take a sample of GRNs prior to the end of the year and To ensure completeness of recording of amounts trace to purchase invoice or the ‘goods received not invoiced’ payable.
accrual in the financial statements.
Take a sample of GRNs just after the end of the year and To ensure that the purchases figure is not overstated in trace to purchase invoice. Ensure that the invoice is this year’s financial statements.
recorded in the PDB after the year-end.
List all debit balances and obtain an explanation from the To confirm why the balance arose and consider
client. re-classifying the amounts as receivables. Debit
balances may indicate control weaknesses with additional implications for audit testing.
(ii) Accruals
Audit procedure Reason for procedure
Cast the list of accruals and agree individual amounts to Confirm that the list is complete, the balances are the general ledger accounts. accurately stated in the general ledger and contains no
unusual or reconciling items which must be investigated.
Compare individual accruals with amount in the prior year To account for unusual differences and identify
accounts. omissions from the list this year.
Agree accruals to payments made after the end of the year To help ensure the accuracy of the amounts paid and for example, amounts payable for tax deducted from wages confirm that the accruals are genuine.
payments to remittance to the tax authority.
Review payments after the year-end to determine whether To confirm completeness of the accruals listing. any accruals are required. Where the need for an accrual is
identified, ensure this is included in the accruals list.
Check calculations of individual accruals to supporting To check that the accrual has been calculated correctly documentation for example, tax deductions from wages to and therefore testing for over or understatement of each to the amount shown on the payroll as deducted from wages accrual.
for the last month of the year.
(iii) Provision for legal action
Audit procedure Reason for procedure
Discuss the provision with the directors. To attempt to confirm whether the company is liable for the payment and confirm that an out-of-court settlement is appropriate.
Obtain a letter from Metcalf & Co’s lawyers. To provide evidence on whether Metcalf may be liable for payment and check the amount provided is approximately correct.
Review any correspondence with the customer. To help determine Metcalf & Co’s liability and determine whether the customer may accept the out-of-court settlement.
Obtain a letter of representation from the directors. To confirm that the directors are considering settlement out of court.
If possible, trace the payment made after the end of the To confirm the accuracy of the amount stated in year to receipt from the customer stating that the payment is accruals.
3 (a) Report to audit committee Inventory control and Sales System
Seed division 12 June 2007
The internal audit of the inventory and sales system identified the following weaknesses:
Weakness Potential effect of weakness Recommendation
Recording of orders
Orders placed on the Internet site are Customers will be sent incorrect The computer systems are amended so transferred manually into the inventory goods resulting in increased customer that order details are transferred directly and sales system. Manual transfer of complaints. between the two computer systems. This order details may result in information will remove manual transfer of details
being transferred incompletely or limiting the possibility of human error.
incorrectly, for example, order quantities may be incorrect or the wrong product code recorded.
Control over orders and packing lists
Each order/packing list is given a Packing lists can be lost resulting Orders/packing lists are controlled with a random alphabetical code. While this either in goods not being despatched numeric sequence. At the end of each is useful, using this type of code to the customer (if the list is lost prior day, gaps in the sequence of packing lists makes it difficult to check to goods being despatched) or the returned to accounts are investigated. completeness of orders at any stage customer’s credit card not being
in the despatch and invoicing process. charged (if lost after goods despatched but prior to the list being received in the accounts department).
Obtaining payment
The customer’s credit card is charged Rhapsody Co will not be paid for the Authorisation to charge the customer’s after despatch of goods to the goods despatched where the credit credit card is obtained prior to despatch of customer, meaning that goods are company rejects the payment request. goods to ensure Rhapsody Co is paid for already sent to the customer before Given that customers are unlikely to all goods despatched.
payment is authorised. return seeds, Rhapsody will automatically incur a bad debt.
Completeness of orders
The computer system correctly Entire orders may be overlooked and The computer is programmed to review ensures that order details are consequently sales and profit the order file and orders where there is no available for all charges to customer understated. corresponding invoice for an order, these
credit cards. However, there is no should be flagged for subsequent
overall check that all orders recorded investigation.
on the inventory and sales system have actually been invoiced.
Summary
We look forward to arranging a meeting to discuss these weaknesses with you in more detail.
Note to candidates: the marking scheme shows other valid points.
(b) Advantages of having an audit committee to Rhapsody include:
– It provides the internal audit department with an independent reporting mechanism compared to reporting to the directors who may wish to hide or amend unfavourable internal audit reports.
– The audit committee will assist the internal auditor by ensuring that recommendations in internal audit reports are actioned.
– Shareholder and public confidence in published financial information is enhanced because it has been reviewed by an independent committee.
– The committee helps the directors fulfil any obligations under corporate governance to implement and maintain an appropriate system of internal control within Rhapsody.
– The committee should assist in providing better communication between the directors, external auditors and management by arranging meetings with the external auditor.
4 (a) Audit report element Reason for that element
Title of ‘independent auditor’ To identify this as an audit report and distinguish it from other reports on financial statements that might be issued by others, directors, etc.
Addressee (according to local regulations) To identify the person(s) who may use or rely on the report.
Opening or introductory paragraph identifying
– the financial statements audited and To make it clear which pages of an annual report have been audited. – responsibilities of entity’s management and To make clear that the directors prepare the financial statements and auditors the auditors audit them following international standards on auditing
(ISAs).
Scope paragraph describing the nature of the To explain the scope of the audit so the standard of the auditors work audit in terms of ISAs followed and the work is clear and other factors such as limitation of audit testing (for performed by the auditor example, not tested all items) is known.
Opinion paragraph referring to the financial To provide the auditor’s opinion on the financial statements in terms of reporting framework followed and expressing the true and fair view, to assure the reader that the audit has been carried auditor’s opinion out in accordance with established principles and practices.
Date of the report To inform the reader that the auditor has considered effects of transactions that the auditor became aware of on the financial statements up to that date.
Auditor’s address This is normally the city where the auditor responsible for the audit is located so he/she can be contacted, if necessary.
Auditor’s signature This is normally the signature of the audit firm as the firm assumes responsibility for the audit, not the individual engagement partner.
(b) Issue one – Understatement of sales income
(i) – If possible, conduct day-by-day analytical review to determine the extent of the misappropriation. – Discuss the situation with the other directors to ascertain their knowledge of the situation.
– Ask the other directors what action they will take regarding the director who appears to have misappropriated money from the company.
– Recommend in the management letter that strict numeric sequence is maintained over sales invoices and that two directors are always on duty to prevent misappropriation of income.
– Obtain a letter of representation to confirm the directors’ estimate of the extent of the fraud and confirm that the directors are not aware of any other instances of fraud.
(ii) The misappropriation is material, being about 5% of income for the year. Therefore:
– Modify the auditor’s report with an ‘except for’ opinion on limitation of scope of audit work on sales income.
– Explain the reason for the understatement of income in the basis of opinion paragraph above the opinion paragraph.
Issue two – Director’s use of yacht
(i) – Ask the director why the yacht is located at his house.
– Ask the director whether any payment was made for the yacht – confirm payment to the cash book and company bank statements.
– If the yacht is for private use only, check that disclosure of the benefit has been made in the directors’ emoluments note in the financial statements.
– Depending on the law of your jurisdiction, recommend to the director that any tax return clearly shows the benefit in kind derived from the company’s asset.
– Ensure the company has provided relevant information to the benefit authority and accrued any penalty for non-disclosure.
– Consider additional audit work to determine whether or not any other company assets have been used in a similar fashion.
(ii) Assuming that disclosure of the benefit has not been shown in the financial statements then:
– Modify the auditor’s report using an ‘except for’ opinion disagreeing with the amount of information disclosed.
5 (a) The purposes of audit working papers include:
– To assist with the planning and performance of the audit. – To assist in the supervision and review of audit work, and
– To record the audit evidence resulting from the audit work performed to support the auditor’s opinion.
(b) Documentation Information obtain
Memorandum and articles of association Details of the objectives of Specs4You, its permitted capital structure and the internal constitution of the company.
Most recent published financial statements Provide detail on the size of the company, profitability, etc as well as any unusual factors such as loans due for repayment.
Most recent management accounts/budgets/ Determine the current status of the company including ongoing cash flow information profitability, ability to meet budget, etc as well as identifying any
potential going concern problems.
Organisation chart of Spec4You To identify the key managers and employees in the company and other people to contact during the audit.
Industry data on spectacle sales To find out how Specs4You is performing compared to the industry standards. This will help to highlight any areas of concern for example, higher than expected cost of sales, for investigation on the audit.
Financial statements of similar entities To compare the accounting policies of Specs4You and obtain additional information on industry standards.
Prior year audit file To establish what problems were encountered in last year’s audit, how those problems were resolved and identify any areas of concern for this year’s audit.
Internet news sites To find out whether the company has any significant news stories, (good or bad) which may affect the audit approach.
(c) The audit working paper does not meet the standards normally expected in a working paper because:
– The page reference is unclear making it very difficult to either file the working paper in the audit file or locate the working paper should there be queries on it.
– It is not clear what the client year end date is – the year is missing. The working paper could easily be filed in the wrong year’s audit file.
– There is no signature of the person who prepared the working paper. This means it is unclear who to address queries to regarding the preparation or contents of the working paper.
– There is evidence of a reviewer’s signature. However, given that the reviewer did not query the lack of preparer’s signature or other omissions noted below, the effectiveness of the review must be put in question.
– The test ‘objective’ is vague – it is not clear what ‘correct’ means for example, it would be better to state the objective in terms of assertions such as completeness or accuracy.
– The test objective is also stated as an audit assertion. This is not the case as no audit assertions are actually listed here.
– It is not clear how the number for testing was determined. This means it will be very difficult to determine whether sufficient audit evidence was obtained for this test.
– Stating that details of testing can be found on another working paper is insufficient – time will be wasted finding the working paper, if it has, in fact, been included in the audit working paper file.
– Information on the results of the test is unclear – the working paper should clearly state the results of the test without bias. The preparer appears to have used personal judgement which is not appropriate as the opinion should be based on the facts available, not speculation.
– The conclusion provided does not appear to be consistent with the results of the test. Five errors were found therefore it is likely that there are some systems weaknesses.
6 (a) Advantages of perpetual inventory systems
– There is no disruption caused by an annual inventory count.
– There is more accurate and regular inventory counting, which enables errors and slow moving or damaged inventory to be identified earlier.
– Increased control over storekeepers because inventory is being reviewed regularly; this should decrease any pilferage.
– Auditors can rely on the computerised inventory system, reducing substantive audit tests of inventory during the year and at the year end.
(b) Audit procedures
Audit procedure – Physical count Reason for procedure
Arrange a meeting with the internal audit Determine the extent to which reliance can be placed on the work of the department. Discuss the procedures carried out internal audit department.
and review working papers produced during the continuous inventory checks. For any errors identified, ensure that appropriate adjustments were made to the perpetual inventory system.
Visit the warehouse and:
Obtain a sample of inventory items already To ensure that the inventory recorded on the computer system actually recorded on the perpetual inventory system and exists.
agree to the book inventory.
For a sample of books in the warehouse, obtain To ensure that all inventory is recorded on the inventory computer details and agree perpetual computer system system – and there is completeness of recording.
records.
Review the condition of the books, taking details To confirm that any inventory which is damaged or unsaleable is of any which appear to be old or damaged. correctly valued.
Form an opinion regarding the overall accuracy To confirm that inventory quantities have been correctly recorded. of the perpetual inventory system.
Ensure all inventory lines are counted at least To confirm that all inventory is counted regularly. once per year in discussion with the internal
audit department.
(c) Fundamental ethical principles Integrity
Integrity is essential for all people operating in the public interest. Integrity implies not only honesty, but also related qualities of fairness, candour, intellectual honesty and confidentiality.
During an audit it is essential that directors can rely on an auditor to keep information about the company confidential. If this was not the case then directors may be less forthcoming with essential information, decreasing the effectiveness of the audit.
Objectivity
Objectivity is a state of mind that excludes bias, prejudice and compromise and that gives fair and impartial consideration to all matters that are relevant to the task in hand, disregarding those that are not.
Accountants have to be objective because many of the factors which make up an opinion on a set of financial statements relate to questions of judgement rather than fact. Accountants therefore need to be unbiased and impartial in making their decisions, especially where they may need to challenge assumptions already made by the directors.
Independence
Independence is freedom from situations and relationships which make it probable that a reasonable and informed third party would conclude that objectivity is either impaired or could be impaired. Independence is therefore related to and underpins objectivity.
Accountants will therefore not participate in any activity or relationship that may impair, or appear to impair, their judgement. They will also not accept anything which may appear to impair their judgement.
(d) Actions in respect of the engagement letter not being signed
– Discuss the matter again with the directors in an attempt to reach a suitable compromise.
– Remind the directors that statutory audits require the directors to make all the necessary information and explanations available to the auditor.
– Explain that lack of information on the website will result in a limitation in scope of the audit work.
– Further explain that because the lack of evidence appears to relate to a material amount that the auditor’s report will have to be modified with an ‘except for’ qualification due to the lack of information and the possibility of misstatement of non-current assets.
Part 2 Examination – Paper 2.6(INT)
Audit and Internal Review (International Stream) June 2007 Marking Scheme
Marks 1 (a) 0·5 for identifying threat, 1 mark each for point (0·5 where not explained)
Self-review threat Management threat Advocacy threat Familiarity threat Fee income Association threat
Other relevant points (each)
–––
Maximum marks 8
–––
(b) Key points 1 for each point
(i) State going concern (enterprise operational existence) 1
Not used when liquidation or ceased trading 1
Not used when directors will liquidate or cease trading 1
–––
Maximum marks 3
–––
(ii) Directors responsibilities – prepare FS 1
Evidence produce 1
Auditor responsibilities – check GC concept 1
Collect audit evidence 1
Disclosure of going concern concept if necessary 1
–––
Maximum marks 4
–––
(c) Key points 1 for each point
Profit and cash flow forecasts 1
Review order books 1
Contact lawyers 1
Review financial status – other GC indicators 1
Correspondence organic certification 1
Contact bank 1
Representation letter 1
Other good relevant points 1
–––
Maximum marks 5
Marks 2 (a) 1 mark per point (0·5 for point and 0·5 for explanation)
Assessment of inherent risk Materiality of the item
Nature of the accounting and control systems Control risk
Experience from previous audits Result of audit procedures
Source and reliability of information available Other relevant points
–––
Maximum marks 4
–––
(b) (i) Trade payables (0·5 for test and 0·5 for explanation) List of payables – cast and agree to general ledger Agree list to payables ledger and ledger to list Analytical procedures
Select sample for testing – rationale for sample Supplier statement reconciliation – agree balances Treatment of non-reconciling items
Cut-off – prior year end – invoice to GRN GRN to invoice prior year end.
Cut-off – post year end
Debit balances treatment 9
(ii) Accruals (0·5 for test and 0·5 for explanation) Obtain list cast and agree general ledger Analytical procedures
Payments made post year end
Supporting documentation 3
(iii) Legal provision (0·5 for test and 0·5 for explanation) Discuss with directors
Lawyer letter
Correspondence with customer Letter of representation
Post year end payment (if possible) 4
–––
Maximum marks 16
Marks 3 (a) Content of report – 1 mark each for
Identifying weakness Effect of weakness
Recommendation to remove weakness
Recording of orders 3
Control over orders and packing lists 3
Obtaining payment 3
Completeness of orders 3
No check on goods in inventory when ordered 3
Two part packing slip insufficient 3
Sales invoice not sent to customer 3
Inventory only updated on despatch 3
Other relevant points 3
–––
Maximum marks 12
–––
Format of answer – appropriate headings 1
Format of answer – report format 1
–––
Maximum marks this section 14
–––
(b) 1 mark per relevant point
Independent reporting 1
Help internal audit implement changes 1
Shareholder/public confidence 1
Directors’ obligations 1
Communication external auditors 1
Independence external auditor 1
Other relevant points (each) 1
–––
Maximum marks 6
Marks 4 (a) Elements of audit report. 1 mark for each of the following (being 0·5 for the element and
0·5 for explanation for that element).
Title of report 1
Addressee of report 1
Introductory paragraph 1
Scope paragraph 1
Opinion paragraph 1
Date of report 1
Auditor’s address 1
Auditor’s signature 1
–––
Maximum marks 6
–––
(b) Maximum 14 marks this section (8 for (1) and 6 for (2)) (i) Additional audit procedures
Issue one – up to 6 marks
Additional audit work 1
Discuss with directors 1
Action against director 1
Management letter 1
Letter of representation 1
Other relevant points (each) 1
Issue two – up to 4 marks
Talk with director 1
Asset transferred to director? 1
Ask whether any payment made for yacht 1
Check disclosure financial statements 1
Check tax return 1
Other relevant points (each) 1
(ii) Effect on audit report Issue one – up to 3 marks
Amount is material 1
Modify ‘except for’ uncertainty 1
Explain why modified 1
Issue two – up to 3 marks
Modify ‘except for’ disagreement 1
Provide disclosure 1
–––
Maximum marks 14
Marks 5 (a) 1 mark per point
Assist planning 1
Assist supervision 1
Record of audit evidence 1
Other relevant points 1
–––
Maximum marks 3
–––
(b) 0·5 for document, 0·5 for information obtained
Memo and articles 1
Financial statements 1
Management accounts 1
Organisation chart 1
Industry data 1
Financial statements similar companies 1
Prior year audit file 1
Internet news sites 1
Permanent audit file 1
Board minutes 1
Other relevant points 1
–––
Maximum marks 8
–––
(c) 1 mark per relevant point (0·5 for area, 0·5 for explaining why working paper poor quality)
Page reference 1
Year end 1
No preparer signature 1
Poor job from reviewer 1
Vague test objective 1
Not an audit assertion 1
Sufficient audit evidence obtained? 1
Lack of appropriate referencing 1
Test results unclear 1
Conclusion not consistent with results found 1
Other relevant points (each) 1
–––
Maximum marks 9
Marks 6 (a) 1 mark each advantage
No disruption 1
Identify slow moving damaged inventory quicker 1
Always have actual inventory details available 1
Increased control storekeepers 1
Limit audit tests 1
Other relevant points 1
–––
Maximum marks 4
–––
(b) 0·5 for procedure, 0·5 for explaining purpose
Meeting with internal audit 1
Continuous inventory > book inventory 1
Book inventory > continuous inventory 1
Condition of books 1
Opinion on accuracy continuous inventory system 1
All lines counted once per year 1
Computer record amendment to actual inventory levels 1
Acceptable procedures on return of inventory 1
Other relevant points 1
–––
Maximum marks 6
–––
(c) 1 mark for explaining concept and 1 for applying to accountants
Integrity 2
Objectivity 2
Independence 2
–––
Maximum marks 6
–––
(d) 1 mark each
Discuss with directors 1
Requirement to make information available to auditor 1
Limitation in scope of audit work 1
Modification of audit report 1
Possibly not work for client 1
Other relevant points 1
–––
Maximum marks 4
