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SITUATION ANALYSIS Instructions: Read and analyze the situation below. Answer the following items on the space provided. Louie, a CPA, is engaged to audit the financial statements ofJudah Company for the year ended December 31, 201A. Louie obtained and documented an understanding of internal control relating to the purchasing process and set control risk at the maximum level. Louie requested and obtained from Judah a schedule analyzing prepaid insurance as of December 31, 201A, and sent conrmation request to Judah's broker. a. What substantive procedures should Louie conduct in verifying the schedule of prepaid insurance and to respond appropriately to the following assertions? 1) Existence and completeness 2) Rights and obligations 3) Valuation or allocation 4) Presentation and disclosure b. What is the importance of the audit evidence gathered from the audit procedures