5) You are the auditor of Martin Pty Ltd, which supplies sporting equipment and apparel. The manager of Martin Pty Ltd has asked that you perform a review of the internal controls within the cash payments area. From your discussions with management and staff you determine the following facts: The accounts payable clerk receives all supplier invoices. The clerk then checks the invoices to relevant delivery notes. If a discrepancy is found, the clerk telephones the supplier to rectify the problem. No payment is made until the clerk is satisfied the problem has been rectified. Often, no documentation is kept by the clerk to indicate how problems are resolved. If there are no discrepancies between the supplier invoice and the delivery note, the clerk prepares a cheque requisition for the amount indicated on the supplier invoice and signs the cheque requisition as evidence of matching the invoice to the delivery notes. She then files the supplier invoice with the relevant delivery note. The only markings made on the invoice are a series of 'ticks' () indicating the invoice has been matched to the delivery note. The completed cheque requisition is forwarded to the banking clerk, who prepares a manual cheque and posts an appropriate journal entry. Once completed, the banking clerk forwards the cheque requisition and unsigned cheque to the managing director, who signs the cheque. All signed cheques are returned to the banking clerk for mailing. Required: Identify four weaknesses in Martin Pty Ltd's internal control for the cash payments area. Give reasons. 6) For the following independent material situations, assume that you are the audit partner on the engagement: i. You are auditing Maulack Company Ltd for the first time. Maulack Company Ltd has been in business for several years but has never had an audit before. After the audit is completed, you conclude that the current year balance sheet is presented fairly. The client did not authorise you to do work on the previous year's balance sheet. ii. Due to losses and adverse key financial ratios, an auditor has substantial doubt about a client's ability to continue as a going concern for a reasonable period of time. The client has adequately disclosed its financial difficulties in a note to its financial report, which do not include any adjustments that might result from the outcome of this uncertainty. iii. An auditor hires an actuary to assist in corroborating a client's complex superannuation calculations concerning accrued superannuation liabilities that account for 35 percent of the client's total liabilities. The actuary's findings are reasonably close to the client's calculations and support the financial report. Required: Identify the type of audit opinion report that you should provide. Give reasons