Auditing accounts

Question 1 [14Marks) For each of the following independent cases identify: -Key audit matters (Auditor's main Concerns). -Effects on the auditor's procedures, & Auditor's appropriate responses. -Effects on the auditor's opinion. You are expected to make appropriate: assumptions, explanations & Justifications 1.Due to Covid 19 Circumstances, the client "Auditee" Suffer from a major decline on sales for the current year. 2- The balance of Accounts Receivable for current year is substantially higher than the balance of previous years. 3. The auditor discovers client's tax evasion. 4- The auditor was not able to confirm the balance of a major vendor of the client due to judicial dispute between the client and the vendor. S- A fraudulent act was committed by an employee of the client. 6- The Client's Internal Control is ineffective. 7- Management refused to write down the ending inventory as asked by the auditor Question2: (6Marks) Identify the Ethical issue that should be taken for each of the following independent cases, and explain the appropriate response to be taken by the CPA: You are expected to make appropriate: assumptions, explanations & Justifications. APC CPA firm was hired by ABC Co. to determine whether it would make financial sense to file a major antitrust lawsuit against one of its competitors, DBO CODBO is an audit client of APC 2.APC CPA firm was hired by CBA Co. to help it determine whether it should acquire XYZ Co. As APC consultants analysed the situation, they realized that XYZ was an even better fit for one of its long-standing consulting clients, CLN Co. APC was collecting consulting fees from both CBA and CLN in their pursuit of XYZ. APC CPA firm has been approached by LMN Co. to do tax services on a contingent fee basis