Part B (7 marks) You are also currently finalising audits for another three clients: Dodgy Brothers, Alexandra Brown, and Old College, and are trying to determine the correct Auditor's Opinion that needs to be issued for the year ended 30 June 2021 for each of them. a Grace Brown (3 marks) Grace Brown is a wealth management company that provides its customers with access to a comprehensive range of both Australian and international investment solutions. Using Grace Brown's facilities, customers can invest directly into the US and access other related products overseas. After an investigation, ASIC uncovered suspicious trades that had occurred during the 30 June 2021 financial year. Unauthorised trades were made by a suspected Chinese hacker who hacked into several retail customer accounts and traded them in such a way that prices were inflated. During its investigation ASIC seized some of the financial records of Grace Brown. As a result, you were unable to audit the following account balance: investment. Investments make up 70% of the statement of financial position and constitute a significant and high-risk account balance. a Old College (4 marks) Old College is a medium size private college which provides a range of diploma courses to its students. During the 30 June 2021 financial year, Old College acquired another private college, Newstead. As part of the takeover one of Newstead's intangible assets, its student interaction and management system (SIMS), was due to be completely impaired as the plan was for Old College's SIMS to be adopted by both colleges. However, Newstead's SIMS was not impaired at all, and Old College recorded both SIMS in its financial statements. This was raised with Old College's management, but the CEO refused to impair Newstead's SIMS. You note the following as at 30 June 2021: Old College SIMS Newstead SIMS $315,000 (an independent valuer was used to confirm this amount) $125,000 (due to be completely impaired) $600,000 $975,000 Total intangibles Benchmark Assume the following: >10% Material 10% Material