The auditor has the duty to obtain sufficient appropriate audit evidence to support the audit opinion on whether the assertions embodied in the Annual Financial Statement are fairly presented. The audit team has carried out the following audit procedures during the audit of First Rand Batteries (Pty) Ltd., a car battery manufacturer, to support the audit opinion: 1. Discussions with the client's Credit Manager and Sales Director regarding the prospects of collecting accounts receivable balances which are long outstanding. 2. Attendance by the auditor of an inventory count at the store's warehouse. 3. Examining signed delivery notes which are returned by customers on receipt of the purchased inventory. 4. Obtaining a bank confirmation letter directly from the client's bank. 5. Computing the gross profit percentage for the current financial year, and comparing it with the budget and prior financial year's figures. REQUIRED: 1.1) Explain what sufficient appropriate audit evidence is. (5 marks) 1.2) Discuss substantive procedures and tests of controls with reference to the differences between them and the different objectives that auditors plan to achieve through them. (6 marks) For questions 1.3 and 1.4, present your answer in the following table format Presentation (2) 97 HAUD230-1-Jul-Dec2022-FA2-DE-05072022 ANNEXURE I: FORMATIVE ASSESSMENT 2 1.3) Classify each of the above items numbered 1 to 5 in the scenario of the audit evidence according to its source, as follows: a. Evidence developed by the auditor b. Evidence obtained from third parties c. Evidence obtained from the client (5 marks) 1.4) Assess the reliability of each of the items numbered 1 to 5 in the scenario of audit evidence using the following categories: a. Highly reliable b. Moderately reliable c. Less reliable Motivate the answer provided to each