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Ma Questions Q. No. (a) You are engaged by M/s Active Ltd. to examine and report on prospec- tive financial information which the management of the company has prepared for presentation at an Investor meet program organized by a State Government to attract investment in their State. The company in its vision document descripted various plans and proposals of the company with projected financial goals and means to achieve the same and various benefits accruing to the economic developments of the State. What important matters will be considered by you, while determining the nature, timing and extent of examination procedure to be applied in the review of the same? (b) Dice Ltd. appointed two CA firms MN & Associates and PQ & Co. as joint auditors for conducting audit for the year ended 31st March, 2019. In the course of audit, it has been observed that there is a major understatement in the value of inventory. The inventory valuation work was looked after by MN & Associates but there was no documentation for the division of the work between the joint auditors. Comment on the above situation with regard to responsibilities among joint auditors. (C) After accepting the statutory audit of M/s All in One Ltd., a departmental store, you became aware of the fact that management of the company have imposed certain limitations on the scope of your assurance func tion which may adversely affect and result in your inability to obtai sufficient appropriate audit evidence to discharge your responsibilit required by the statute. Indicate the consequences and your respons to the limitations imposed by the management on your scope