1.You are the auditor of Sandstone Pty Ltd (Sandstone) and are in the process of completing the audit for the year ended 30 June 2020. The following two (2) outstanding matters have been highlighted in your firm's completion documentation:

a) You have heard a rumour that Sandstone is planning to merge with a competitor, Pebbles Pty Ltd (Pebbles). If accurate, this will have disclosure implications.Management have advised you that although they have had several meetings with the management of Pebbles, no such merger is currently planned. Management have offered to make written representations confirming their intentions.

b) The invoices to support the cost of a significant purchase of machinery cannot be found. Management have offered to make written representations confirming the cost of the machinery.

Are the client's written representations sufficient to resolve each of the outstanding matters noted above?Justify your answers.