Grealish Co is a retailer of ladies clothing and accessories and a subsidiary of Southampton plc. It operates in many countries around the world and has expanded steadily from its base in Europe. Its main market is aimed at 15-year-olds to 35-year- olds and its prices are mid to low range. In the past the company has bulk ordered its clothing and accessories twice a year. However, if their goods failed to meet the key fashion trends then this resulted in significant inventory write downs. As a result of this the company has recently introduced a just in time ordering system. The fashion buyers make an assessment nine months in advance as to what the key trends are likely to be, these goods are sourced from their suppliers but only limited numbers are initially ordered. Grealish Co has an internal audit department from the parent company Southampton plc but at present their only role is to perform regular inventory counts at the stores. The internal audit department of Southampton plc are planning the audit of Grealish Co for the year ended 31st December 2022. The Internal Audit Manager had earlier discussed with the Finance Director of Grealish Co and produced the following notes of his meeting and financial statement extracts. Grealish Co management were disappointed with the 2020 results and so in 2021 undertook a number of strategies to improve the trading results. This included the introduction of a generous sales-related bonus scheme for their salesmen and a high- profile advertising campaign. In addition, as market conditions are difficult for their customers, they have extended the credit period given to them. The finance director of Grealish Co has reviewed the inventory valuation policy and has included additional overheads incurred this year as he considers them to be production related. He is happy with the emerging 2021 results and feels that they are a good reflection of the improved trading levels. Revenue Cost of Sales Gross Profit Operating Expenses Profit before Income Tax Forecast (2021) $ million 23 -11 12 -7.5 4.5 Actual (2020) $ million 18 -10 8 -4 4 Inventory Receivable Cash Trade Payable Overdraft 2.1 4.5 0 1.6 0.9 1.6 3 2.3 1.2 0 Required: Outline and explain the key elements of an annual internal audit plan for Grealish Co in 2022. (60 marks) Answer: Bil 1. Key elements Explanation 2. 3. 4. 5. . 6. 7. 8. 8. 9. 10. Note: Please include references if any