This question relates to Professional Auditing.

OPSM Opticians Ltd is a producer of fashion eyewear. The audit report for the year ended 30 June 20X9 was signed on 5 August 20X9 and along with the financial report was mailed to shareholders on 10 August. Consider the following independent events. Assume that each event is material.

I.	On 5 July, OPSM Opticians entered into a new contract to supply eyewears to JDS, a new major department store. The contract was similar in nature to other contracts previously negotiated. (2 marks) (50- 80 words) OPSM Opticians has invested significant funds in developing a new type of unbreakable
II.

sunglass lens. On 8 July, OPSM Opticians applied for a patent for the lens, only to discover that a competitor had lodged a similar application on 20 June. The granting of Trendy Accessories application is now in serious doubt. ( 80 words)

III.	Internal audit has uncovered a major fraud at one of OPSM Opticians branches. The fraud was perpetrated by two senior staff, acting in collusion over a number of years. The

internal auditors released their report to management on 15 July, after a highly confidential investigation spanning several months. (80 words)

IV.	One of OPSM Opticians major customers, Leisure Pty Ltd, suffered a fire on 20 July. Since Leisure Pty Ltd was uninsured, it is unlikely that their accounts receivable balance will be paid. (80 words) On 25 July, a well-known financial planner advised his clients not to invest in OPSM
V.

Opticians due to poor long-term growth prospects. The market price for OPSM Opticians shares subsequently declined by 40%.(80 words) Required: For each of the above events, state the appropriate action (if any) that the auditor would require of the client in order to issue an unqualified audit opinion. Give reasons.