Subsequent events procedures should be performed between the date of the financial statements and which date? A. The date the audit work for subsequent events is performed 8. The date of approval of the financial statements C. The date of draft audit report submitted D. The date the financial statements are authorized for issue 2. You are drafting the auditor's report for Saw Limited, and the audit engagement, parther has reminded you that as Saw Limited is a listed company, the report will need to include a Key Audit Matters section. According to ISA 701 Communicating Key Audit Matters in the Independent Auditor's Report, which of the following should be included in the Key Audit Matters section of the auditor's report? A. Matters which required significant auditor attention B. Matters which result in a modification to the audit opinion C. All matters which were communicated to those charged with govemance D. All matters which were material to the financial statements 3. One month after the financial statements were issued the legal claim was finalized with the court awarding compensation of USD. 500,000 (material to financial statements) to the ex-financial controller of company, ABC Limited. The directors of the company have contacted Kin \& Co to inform them of the outcome. Which TWO of the following are appropriate actions for kin \& Co to take? A. Discuss the matter with management and, if required, those charged with governance B. Obtain a written representation from management C. Consider whether the firm should resign from the engagement D. Enquire how management intends to address the matter in the financial statements 4. How should the inconsistency between the Director's Report and financial statements be referred to in the auditor's report of Mission Ltd.? A. Within the Other Information section B. Within an Emphasis of Matter paragraph C. Within an Other Matter paragraph D. Within the Auditor's Opinion section B. Daks for Cyinion C. Basis for Quinitied Opitrion D. Key Audit Matters E. Cyention F. Quatified Oplrion G. Responsibilities of Maragement and Thoes Duryon With Comemaros 7. Following sigrificant rain on 20 May 20 ys, one of Hurnphites Cofs three waretwures received yet. No amendments of direlorates pave been made in the firuariay statements. Which of the following statements is. TFiJE in respert of the warelputa? A. The value of the assests damaged during the fiood thaid be written down to their tealsates values B. If the impact of the fiood is material, the dinectors thoild include a destopure riote deaniliry the inpact to the comparyy C. The insurance claim should be recognised acs a contingest asset. D. As the fiood occurred after the year end it will have no impect on the auditor's repgrt: 8. Chemicals are manufactured up to one month before dispatch to enable Panda Co to undertake extensive quality control checks prior to dispatch. Testung on 3 April 205 found that a batch of chemicats produced in March 20 ys was defective. The cost of this batch was $850,000. In its current condition it can be sold at a scrap value of $100,000 with selling costs of 51,000 . The costs of correcting the defect ate too significant for Panda Co's management to consier this an alternative option. This is a Non-Adjusting Event. A. True B. False