Question 3 a) Distinguish between the auditor's and management's responsibilities for the financial statement. (2 marks) iii. b) The audit associate who is assigned to help you appears to be unsure as to which financial statement assertions is addressed by different audit procedures. Your audit file has the following audit procedures: i. Examined sales invoices to see if they were initialled by the credit manager indicating credit approval ii. Compared this year's expenses with last year's expenses and investigated unusual fluctuations. Send letters to a sample of accounts receivable customers to verify whether they have an outstanding balance at 31 December 2020 iv. For a sample of sales transaction, verify that the amount of the transaction has been recorded in the correct account in the accounts receivable subledger. Inquire of your audit client whether accounts receivable have been pledged as collateral on a long-term debt. vi. Determine whether long-term receivables and related party receivables are reported separately in the financial statements. Use audit software to total sales in the subledger for the month of July and trace it to posting in the general ledger. Examine a sample of invoices to determine whether each order has been shipped, as evidenced by a shipping document number. V. vii. viii. Required State the assertion being addressed by each audit procedure above. (4 marks) c) ISA 200 - Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing states that the auditor shall plan and perform an audit with professional scepticism. State what professional scepticism is and the its primary components. (1 mark)