1. ISA 560 Subsequent Events states that the auditor shall perform audit procedures designed to obtain sufficient appropriate audit evidence that all events occurring between the date of the financial statements and the date of the auditor's report that require adjustment of, or disclosure in, the financial statements have been identified. Required State TWO of those procedures which the auditor shall perform. (2 marks) 2. ISA 580 Written Representation requires the auditor to request written representations from management with appropriate responsibilities for the financial statements and knowledge of the matters concemed. Required Distinguish between management representation letter and management letter. (2 marks) 3. You have been the audit manager of Osbourne Ltd, a retailer with a year end of 30 June 2020 for the past five years. Historically there have been several audit adjustments; and control risk was usually assessed as high. Based on the planning for the current year's audit, the historical assessments seem to remain the same. The draft financial statements for the year ended 30 June 2020 show a profit before tax of $1,750,000. In conducting the audit, you came across the issue below: Osbourne Ltd which has a credit period of 30 days, has a debtor with an accounts receivable balance of $150,000, and which has had no payments on the account in over 90 days. The finance director (FD) is confident that the debtor will settle the amount in full and no provision was made with regards to this balance. As the auditor you disagree with the FD's assessment. Required State the audit opinion your audit firm would likely give if the issue remains unresolved and provide the rationale for your response. (4 marks) 4. You are the audit manager on Omally Ltd (Omally) which has a year end of 31 July 2020. On 1 January 2020 Omally implemented a new accounting system, which was generally successfully done, except for February 2020 when one month of Omally's inventory records were lost. Despite several attempts, the audit team was unable to perform alternative audit procedures to verify material inventory transactions in February 2020, although the year-end inventory count went smoothly. Required State the audit opinion your audit firm would likely give on account of the above issue and provide the rationale for your response. (2 marks) 1. ISA 560 Subsequent Events states that the auditor shall perform audit procedures designed to obtain sufficient appropriate audit evidence that all events occurring between the date of the financial statements and the date of the auditor's report that require adjustment of, or disclosure in, the financial statements have been identified. Required State TWO of those procedures which the auditor shall perform. (2 marks) 2. ISA 580 Written Representation requires the auditor to request written representations from management with appropriate responsibilities for the financial statements and knowledge of the matters concemed. Required Distinguish between management representation letter and management letter. (2 marks) 3. You have been the audit manager of Osbourne Ltd, a retailer with a year end of 30 June 2020 for the past five years. Historically there have been several audit adjustments; and control risk was usually assessed as high. Based on the planning for the current year's audit, the historical assessments seem to remain the same. The draft financial statements for the year ended 30 June 2020 show a profit before tax of $1,750,000. In conducting the audit, you came across the issue below: Osbourne Ltd which has a credit period of 30 days, has a debtor with an accounts receivable balance of $150,000, and which has had no payments on the account in over 90 days. The finance director (FD) is confident that the debtor will settle the amount in full and no provision was made with regards to this balance. As the auditor you disagree with the FD's assessment. Required State the audit opinion your audit firm would likely give if the issue remains unresolved and provide the rationale for your response. (4 marks) 4. You are the audit manager on Omally Ltd (Omally) which has a year end of 31 July 2020. On 1 January 2020 Omally implemented a new accounting system, which was generally successfully done, except for February 2020 when one month of Omally's inventory records were lost. Despite several attempts, the audit team was unable to perform alternative audit procedures to verify material inventory transactions in February 2020, although the year-end inventory count went smoothly. Required State the audit opinion your audit firm would likely give on account of the above issue and provide the rationale for your response. (2 marks)