Agree or Disagree Required: Indicate whether you agree or disagree with the following statements and explain your reasoning. a) Paula Padgett was performing substantive testing over the accounts receivables at New Lion Importers Lid. (New Lion), Paula indicated to her staff member, Leona Ellis: "The accounts receivable balance at New Lion is material in amount. The two key assertions that we will be focusing on are the occurrence and the rights and obligations assertions". b) Metropolitan Poultry Company (Metropolitan) operates as a speciality food distributor. Gordon Brown is the auditor of Metropolitan and has told his staff that the bankruptcy of one of Metropolitan's customers after year end should be considered a type 2 subsequent event. The bankrupt customer had an outstanding accounts receivable balance at year end and the bankruptcy has brought to light financial difficulties that the customer was experiencing at year end. c) Doug Smock, CPA encouraged his client Rosie Jones to hire him to perform a due diligence (Section 9100) engagement. Doug reassured Rosie that he will provide an opinion on the results of the procedures he performs. d) During the planning stage, Tanya Welch determined that she would use a combined audit approach for a small client with a history of poor internal controls. e) Steve Slopak, CPA is a partner with Huck and Finn, LLP. Steve is reviewing the ABD Company (ABD) audit file. John Gunner is the audit senior on the ABD file. John asked Steve for an explanation of how audit risk would affect his work. Steve answered: "Audit risk affects the quantity and quality of evidence gathering". f) Tests of controls are usually performed at year-end. g) Angela Pelletier discovered a material overstatement in the financial statements of Mckenzie Lumber Lid that was limited to one account. Angela issued an adverse opinion on the audit report. h) To ensure that it is independent of prospective and continuing clients, an audit firm must review the threats to independence and make certain that safeguards are put in place to limit or remove those threats. the auditors i) The responsibility for preventing and detecting fraud rests with those charged with governance at the client as well as j) Teresa Tremblay was assigned to the Whitepaper Inc. (Whitepaper) audit. Teresa was ensuring that when recognizing revenues, all transactions and events that should have been recorded by Whitepaper have been recorded. Teresa is testing the cut-off assertion