I need help with this question

Salient cosmetics are a long-established family company that manufactures soap product. They sell to customers who re-package and market them under their own brand names. The company has five manufacturing units spread across its home country. The machinery in two of these units has recently been upgraded to improve the speed of the production line.

Fred Kami, who had been managing director for 21 years, died just over a year ago. Ian Burton has been promoted from sales director to take over as managing director, and a new sales director has been brought in from outside the company.

The new sales director recently increased the credit period offered to customers from 30 to 90 days in an attempt to encourage new business and improve sales to existing customers.

The finance director, Ben Nguzu, has recently moved from a full-time to a part-time role, as he wishes to spend more time with his family. He has announced his intention to leave within the next 12 months, and the company is seeking a full-time replacement.

Profit has been falling over the last three years. The company wishes to gain a listing on the Stock Exchange, and all efforts are being focused on reversing the alarming profit trend. A bonus scheme has recently been introduced, where certain managers and directors are paid a lump sum if production exceeds a certain level.

You are the auditor of Salient cosmetics, and are about to commence the planning for the forthcoming audit.

Required:

(a) Identify and explain FIVE audit risks relevant to the audit of Salient Cosmetics.
(10 marks)

(b) For each risk, explain the auditor’s response in addressing the risk.
(10 marks)