Question a. You are auditing Galaxy Glass Ltd (Galaxy) for the year ended 30 June 2021. The financial report will be approved and signed by the directors on 30 July 2021, with the auditor's report signed on the same date. The audited financial report will be issued on 12 August 2021. After 30 June 2021 the following information came to light: (i) On 2 July 2021, the Australia tax office issues a new tax policy which reduces the corporate income tax from 30% to 20%. (ii) On 15 July 2021, Bruno Ltd (Bruno), who is one of Galaxy's clients, went bankrupt. Bruno purchased a large number of products from Galaxy on credit. The liquidator of Bruno warns Galaxy on 30 July 2021 that creditors were not likely to receive any outstanding amounts owed to them. (iii) On 11 August 2021, the media reports that 10 workers got injured due to an explosion that occurred in one of Galaxy's factories located in South Australia. Galaxy's management believes that this incident will have a negative influence on the firm's reputation. For each situation above, assess the type of subsequent event (Adjusting event or Non- adjusting event) and how each would impact Galaxy's financial report for the year ended 30 June 2021. (6 marks) Event Type of subsequent event Impact on financial report for the year ended 30 June 2021 (Adjusting event or non- adjusting event) 1. 2. 3. b. When auditing Galaxy Glass Ltd (Galaxy), state the type of audit opinion that you would issue in the following independent situations. Explain your answer. (i) If during the audit, your team concluded that the value of machines is materially overstated due to the recently developed new technologies. Management refuses your request to recognise an impairment for obsolete machines. (2 marks) Type of audit opinion Explain your answer (ii) If during the audit, your team identified that two largest subsidiaries of Galaxy did not have proper accounting records. The audit team can not verify the accounting information provided for these two subsidiaries. (2 marks) Type of audit opinion Explain your