1.1.In the audit of Accounts Receivable at Tarneit Company Ltd ( the client) for the financial year ended 30 June 2019, you determine a materiality level of $10,000 for Accounts Receivable. During the audit, you discover following issue (No other matters were identified as a result of the audit work.): 1 customer owed $9,000 to the client at the year-end but this amount is not reflected on the clients financial report. Required: a. Is there any misstatement in this situation? b. What is management assertion being violated (or at risk)? c. What would you do if the client admitted they made an unintentional mistake for not recording the amount to be received from the customer above? d. In some cases auditors still considered misstatements as material although the amount of misstatement might be lower than the set materiality. List other qualitative factors that the auditor might consider misstatement material even the misstatement is below the materiality level. 1.2 In the audit of Property, Plants and Equipment (PPE) at Truganina Company Ltd (the client) for the financial year ended 30 June 2019, you determine a materiality level of $55,000 for PPE (property, plants and equipment). During the audit, you discover following issues: (No other matters were identified as a result of the audit work.): An equipment of $25,000 is presented in financial statement but was destroyed on 20 June 2019. A plant of $35,000 is presented in financial statement but was disposed (i.e. sold) on 1 June 2019. Required: a. What is management assertion at risk for each of the misstatements? Explain. b. What would you do if the client admitted and you agree that these are errors (unintentional mistake) for recording the above two transactions?