M Ltd. is a business specialising in producing and selling wine. The company has recently been listed on the Stock Exchange. After listing, the company changed the auditor and employed you as the new auditor.In planning the audit, you discovered the following:1) The managing director of the company focusses on running the wine business and leaves financial matters to the control of the finance director. The finance director is paid a base salary plus a bonus based on the profit generated each year.2) The company is successful in obtaining a large contract with an oversea customer. It manages the foreign exchange rate risk through hedging.3) In checking the stock of wine, you discovered that there was a significant amount of stock in the warehouse as the bottles of wine were rejected by the overseas customer. The payment for this stock was in dispute.4) You contacted the previous auditor who advised you that the managing director had no knowledge in financial matters and he had disagreement with the finance director on the accounting treatment of certain issues.You are required to write a report to the audit partner to outline the plan of your audit of the company.