5 Results of quality review inspections of auditors frequently have some or all of the following components following an examination of the working papers: A failure to apply professional scepticism Matters identified as issues in the working papers but not followed up A failure to obtain sufficient appropriate audit evidence Required 1. Explain what is meant by professional scepticism in the context of a statutory external audit. 2. What is the purpose of audit working papers and what are the minimum standards? (4 marks) (4 marks) 3. What do you believe is the cause of items identified in the working papers not being properly followed up? (3 marks) 4. Consignz Limted will conduct a year end stock count at the sole warehouse it operates. Set out in brief bullet point form with reasons: (a) the matters Consignz needs to consider in undertaking the count (8 marks) and (b) the matters you will have to address as auditor. (6 marks) Total 25 marks