As the lead auditor from Miranda Accountants, Miranda Krim manages the auditing activities of Kismat Group for the financial year ending in December 2019. Kismat Group is a small company selling mostly consumer products but has a small-scale involvement in the real estate sector. In 2019, due to staffing issues in the cash department, the company experienced some disruptions in cash management, and this has been communicated to Miranda in due course. After an initial analysis, Miranda realized that she has to collaborate with the banks the company is dealing with.
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	Required:
	a.	Discuss the audit procedures that Miranda should apply in this regard.
			(15 marks)
Kiara Accountants finished auditing fieldwork on the financial statements of Numb Inc. on February 17, 2019 for the year ended December 31, 2018. Everything is fine except the company changed its inventory valuation from Last In First Out (LIFO) to First In First Out (FIFO) for which the auditor added an explanatory paragraph to the audit report. On 15 March 2019, the auditors completed the tax return and the draft of the financial statements. The final audit report was completed, attached to the financial statements, and delivered to the client on March 30, 2019.
	Required:
	b.	What should be the appropriate date on the auditors report and why?
			(5 marks)
	c.	What is a standard unqualified audit report? Discuss four circumstances that are required for a standard unqualified report to be issued.
			(20 marks)
Kiron Associates is the auditor of Al-Harmain Inc. for the year ended on 31 December 2019. The company operates a chain of restaurants in London and Manchester. To discuss audit engagement matters, auditors from Kiron Associates arranged a meeting in the corporate office of Al-Harmain group at Whitechapel. During the meeting, the auditors found your meal is free if we fail to give you a receipt written on the drive-through window of the restaurant.
	Required:
	d.	How would this observation influence Kiron Associates in terms of deciding the audit procedures for cash transactions at the restaurant?
			(10 marks)