Noda plc (‘Noda’) is a large company which your firm has just accepted as a new client. You are the audit manager for Noda and are planning the audit for the year ended 31 December 20XY. The principal...

Noda plc (‘Noda’) is a large company which your firm has just
accepted as a new client. You are the audit manager for Noda
and are planning the audit for the year ended 31 December
20XY. The principal activity of the company is the manufacture
and sale of mobile phones and associated software. Noda is
based in the UK but manufactures the phones in China and
sells its product all over the world.
You are conducting initial planning and risk assessment work
and have discovered the following information:
i. Draft Figures for the Year Ended 31 December 20XY
Management accounts indicate that the revenue for the year
has fallen by 25% compared with the previous year following
concerns that Noda is using an operating system for its phones
that is unpopular with customers. Noda has entered into a
contract with the operating system supplier that lasts for
another two years. Withdrawal from the contract could mean
that Noda would have to make significant penalty payments to
the operating system supplier.
ii. Shareholder Threat
As a result of the above, the value of Noda’s shares has
fallen significantly. A group of shareholders is protesting that
none of the directors should receive bonuses for the year. This
issue is receiving a lot of publicity nationally.
iii. Finance Issues
Noda has obtained a significant amount of debt finance from
various sources and its gearing ratio is now 80%. Industry
analysts have commented that Noda may need to raise more money from shareholders in the future in order to continue in operations.

Explain why it is important for you to develop a plan to
conduct the audit of Noda.

(I want to know if you can answer this question, it is of auditing, if you can`t under which subject should I put it for auditing?)