ISA 500 requires the auditor to gather sufficient and appropriate audit evidence as a basis of conclusion. The auditor must also communicate the audit finding to those charged with governance.

Required

1. List and explain three factors that influence the reliability of audit evidence. (6 Marks)
2. Briefly explain the financial statements assertion that the auditor must test in respect to inventories. (5 Marks)
3. Briefly explain the importance of Key Audit Matters disclosures in the audit report

(5 Marks)

4. Explain the implication of a qualified opinion in the audit report of limited company (4 Marks)