Bright Star $($Pty$)$ Ltd is considering issuing corporate bonds and must have their financial statements audited

as part of the process.

You are required to:

a$)$ Describe the steps an auditor would take to give Bright Star $($Pty$)$ Ltds$$ prospective investors confidence

that the financial statements are without significant inaccuracies. Focus on describing what processes will

take place in the following steps:

$$ Initial Planning

$$ Risk Evaluation

$$ Collection of Audit Evidence

$$ Conducting Audit Procedures

$$ Evidence Assessment

$$ Audit Reporting

$(6$ Marks$)$

b$)$ Define 'reasonable assurance' in the context of an audit. $(3$ Marks$)$

c$)$ In what ways does an auditor's assessment in Bright Star $($Pty$)$ Ltds$\text{'}$ situation assist potential investors in

reducing their investment risk?