(a) You are now nearing the completion of the audit of Rooney Co Ltd for the year ended 31 December 2020. Draft financial statements have been produced. You have been given the responsibility of performing of a review of the audit files before they are passed to audit manager and the audit partner for their review. You have been asked to concentrate on the sources of the evidence obtained. While reviewing the working papers you noted that your junior officers have recorded the following sources of evidence: (i) Oral representation by management in respect of the completeness of sales where the majority of transactions are conducted on a cash basis. (ii) Year-end suppliers' statements (iii) Physical inspection of a non-current asset by an auditor

One of your responsibilities is to act as a mentor to junior officers into the department Required

ISA 500 Paragraph 4 states that The objective of the auditor is to design and perform audit procedures in such a way as to enable the auditor to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor`s opinion.

Laying much emphasis on sufficiency and appropriateness of Audit procedures, discuss with your junior officers the extent to which each of the above sources of audit evidence is sufficient and appropriate.