Question 1 (12 marks)

Consider each of the followingindependentsituations concerning companies incorporated under the Corporations Act 2001.Assumethat in each situation the auditors haveno concernsother than those prescribed:

(a)You are the auditor of Dawn Limited (Dawn). Dawn has intangible assets, being trademarks, which are recorded in the accounts at $3,500,000. The value is the same as in the prior year. During the year, your client commissioned an independent valuation of the trademarks. This valued them at $2,475,000. Management refuses to adjust the financial report to reflect the revised calculation. The materiality for the client has been set at $1,300,000. Assume that, with the exception of this issue, you are satisfied in all other material respects.

(b)Your client has lost most of its accounting records due to a fire in its accounts department. Although, it is able to partially reconstruct its financial statements due to an asset stocktake and third-party confirmation procedures, there is no documentation to support other transactions for the year.

Required:

For each of the above situations (a-f),determinethe appropriate audit opinion to be issued andexplain providing the appropriate reasons.