Question B1 ISA 505, external confirmations, states that 'the objective of the auditor, when using external confirmation procedures is to design and perform such procedures to obtain relevant and reliable audit evidence'. Required: a) List four examples of external confirmations. (Word limit:100) (2 marks) b) For each of the examples in (a) above explain: i. One audit assertion that the external confirmation supports, and; ii. One audit assertion that the external confirmation does NOT support. (Word limit:300) (8 marks) Total: 10 marks Question B2 Lyd Co has a significant number of cash transactions and recent non-current asset purchases have been financed by a bank loan. This loan is repayable in equal annual instalments for the next five years. Required: a) Explain the procedures to obtain a bank report for audit purposes from Lyd Co's bank and the substantive procedures that should be carried out on that report (Word limit: 200) (10 marks) b) List the further substantive procedures that should be carried out on the bank balances in Lyd Co's financial statements. (Word limit: 200) (7 marks) Total: 17 marks