1. Explain the difference between substantive testing and tests of control. 2. What is the auditors main concem when testing for unrecorded balances of liabilities? 3.The following two sltuations are provided: (i) Moran Care Ltd operates several nursing homes in Victoria. Residents are charged a fixed fee per week and the occupancy rates are always full or close to full Your testing of controls over occupancy revenue and these support a high level of reliance on these controk. (ii) Chespic Stores Pty Ltd operates a chain of discount stores seling a large range of contintally changing merchandise. Cheaple Stores is majority owned and operated by Karen Kworg Karen handiles all imventory purchases for the business buying a Grge portion at liquidation auctions at bargain prices. Karen makes all decisions about the stock to purchase and the price to pay and is the sole signatory on the company's bank account. You have determined that there are no controls over inventory purchasing an which vou can place reliance but you have noted that Karen keeps all available documentation which is passed on to the accountant for checking and processing - Required: Explain how the facts above would affect the noture, timing and extent of substantive procedures for occupancy revenue in situation (i) and purchases for stuation (iin) 4. You are the audit manager for the audit of Stardust Ltd for the vear ended 30 June 2018 While auditing the payroll vour audit assiltant Arny Waterstreet, his srlected a sarnple of individual pays from the monthly paryroll listing and conducted the following checks: -checked hours worked to authorised timesheets - vouched pay rates usod to relevarit industrial awards - checied the calcilation of each pay - vaced arineal sick arid other leave to inthorised leave forms nageed the balance of the payrod listing to the general kedger Posquirted: Identify the audit assertions relatine to each of the above substantive audit procedures