Assume that you are the external auditor for Lumber Enterprise Limited, whose financial year ended on December 31, 2019. The audit fieldwork was completed on March 31, 2020, and the audit report was delivered to Lumber Enterprise Limited on April 5, 2020.Each of the following is independent and highly material events relating to the December 31, 2019, financial statement.

1.Watson Limited a major customer of Lumber Enterprise with an outstanding balance of $250,000, as of December 31, 2019, filed for bankruptcy on January 23, 2020. Prior to the bankruptcy, Watson Limited balance was in excess of 60 days past due.

2.Lumber Enterprise warehouse, which was valued at $2.5 billion was destroyed by a hurricane on March 1, 2020. The warehouse was totally ravaged and is expected to cost $1.5 billion to repair.

3.On March 14, 2020 the auditor discovered that Apple limited, a debtor of Lumber Enterprise went bankrupt on February 2, 2020. The cause of the bankruptcy was an unexpected loss of a major law suit on January 20, 2020, resulting from a product deficiency suit filed by one of Apple's customer.

4.On January 15, 2020, Lumber Enterprise Limited settled a lawsuit out of court that had originated in 2018 and is currently listed as a contingent liability.

5.On November 30, 2019, the auditor discovered an uninsured lawsuit against Lumber Enterprise Limited that had occurred on February 28, 2019.

6.On July 15, 2020, the auditor discovered that a Edward Electronics Limited a debtor of Lumber Enterprise Limited went bankrupt on May 23, 2020, the sale had taken place October 12, 2019, but the amount appeared collectible at December 31, 2019 and March 31, 2020.

7.Lumber Enterprise has been operating below its capacity for the past two fiscal periods. On January 3, 2020, the company sold machinery that had been dormant due to underutilization of capacity. The machinery was sold for $142M but had a value of $200M as of December 31, 2019.

8.On June 29, 2020, the auditor became aware of a major accounts receivable fraud perpetrated by the accounts receivable clerk in November 2019. John Brown. It was also discovered, that Supreme Medical, a debtor of Lumber Enterprise, went bankrupt on March 2, 2020, due to declining financial health. The applicable sales to Supreme Medical occurred in May 2019.

Required

a)Assess each of the independent material scenarios listed above and state which of the five listed "possible required actions" is applicable and justify your answer pursuant to authoritative literature. [24 marks]

"Possible Required Action"

i.Adjust the December 31, 2019, financial statements.

ii.Disclose the information in a footnote in the December 31, 2019, financial statements.

iii.Request the client to recall the June December 31, 2019, statements for revision.

iv.No action is required.

v.The information provided is not sufficient to determine the required action.

b)Assume that you recommended adjustment to the financial statements and the management of Lumber Enterprise Limited decided to ignore the adjustment to the financial statement, what impact such a decision would have on the audit report? Justify your answer. [4 marks]

7. Euler and Lagrange developed the calculus of variations. (a) Explain in a sentence what the calculus of variations is about. (b) Find the Euler-Lagrange equation (assuming y(a) = 0 and y(b) = 0 for minimizing the integral: VIty (2) d. (c) How is the Euler-Lagrange equation in general related to the directional derivative of vector calculus?English (en) ALCULUS I Section1 Lectu shboard / My courses / CALCULUS | Section1 Lecture (2020 Question 21 el -1-1 Find lim1-+01-cost Not yet answered O a. 1 Marked out of 2.00 O b. 2 Flag question O C. -2 O d. - 1 Previous page - oslall jo Mul call Jump to... 6.jfif 5.jfifEnglish (en) CALCULUS | Section1 Lec ashboard / My courses / CALCULUS I Section1 Lecture (2 Question 20 Find limz-40(1 + 2x) = Not yet answered O a. e Marked out of 200 O b. 0 Flag question O c. ez O d. e 4 Previous page - oslall jo will sjall Jump to.Use a Venn diagram to answer the question. At East Zone University (EZU) there are 415 students taking College Algebra or Calculus. 198 are taking College Algebra, are taking Calculus, and 66 are taking both College Algebra and Calculus. How many are taking Calculus but not Algebra A 217 B 132 C 66 D 349