In the audit of accounts receivable (AR) at Charlotte Company Ltd (Charlotte) for the financial year ended 30 June 2021, the auditor is provided an aged trial balance listing all customers with the corresponding amount owed to Charlotte at the end of the year, as presented in columns (1) and (2) in the Table below). Auditors have selected some customers and sent confirmation letters to each of those selected. The amount confirmed by each customer is presented in columns (3) in the Table below. All amounts are in $.

Customer	Amount recorded on	Amount confirmed
(1)	AR aged trial balance (2)	By customers (3)
Baseline Ltd	70,500	70,500
Surry Hills Corporation	201,550	201,550
Parkmore Pty Ltd	83,460	83,460
Hillside Institute	325,500	300,000
Hung Long Partnership	356,000	356,000
Sydney Co.	600,000	600,000
Mr. Abbott	68,600	68,600
Victoria Medical Centre	615,000	615,000

Additional information:

- The auditor satisfies with all balances, except for the balance owed by Hillside Institute. Hillside Institute has indicated in its response that it had returned goods valued at $25,500 to Charlotte by 30 June 2021, due to a wrong type of goods sent to Hillsides on 5 June 2021.

Required:

(a) State the audit objective (or assertion) that the auditor would like to confirm for the AR account based on his audit procedure. (1 mark)

(b) Some people think that the audit procedure performed by the auditor is a test of control. Present your idea and argument to support your answer. (Limit your answer to 20 words). (1 mark)

(c) You are asked to review the audit findings and suggest the appropriate type of auditors opinion in this circumstance. You discuss with Charlotte about the dispute over Hillside response and Charlottes CFO admitted that Charlotte received the goods returned by Hillsides on 29 June 2021, however the accountant recorded this transaction on 1 July 2021. State action (if any) and the auditors opinion if the auditor-in-charge has set a materiality level of $28,000 for the AR account, given that there is no other misstatement discovered? (Limit your answer to 30 words).

(d) Will your answer to (c) be different if the auditor-in-charge has set a materiality level of $24,000 for the AR account? State action (if any) and the auditors opinion in this scenario. (Limit your answer to 40 words).