1-

As part of the audit of tangible non-current assets, the auditor of Lowe Co has performed an audit procedure which involved the physical inspection of a sample of the company's fixtures and fittings for signs of impairment. The audit procedure provides evidence on which of the following assertions? (i) Existence (ii) Rights and obligations (iii) Valuation

a) (i) only

b) (i) and (ii)

c) (ii) and (iii)

d) (i) and (iii)

2-

Cobble Co is your audit client, and you are drafting the audit opinion on its financial statements for the year ended 31 December 20X9. You have requested a written representation from management regarding the potential outcome of a court case, but management has refused to provide the representation. The court case relates to damages claimed against Cobble Co of $350,000, for which a provision has been made, based on lawyer's correspondence. This is material to Cobble's profit before tax. What is the most likely impact of this on the auditor's report?

Adverse opinion

Qualified due to inability to obtain sufficient appropriate evidence

Disclaimer of opinion

Qualified due to material misstatement