Tool Question 6 Part A Reporting obligations (6 marks) 10 points SAVE ANSWER You are an audit manager at Perfect Partners (PP), an audit firm that specialises in financial services audits. GenY Super is a company that provides self-managed superannuation fund (SMSF) services. SMSFS are superannuation funds held by a maximum of 4 members, who are generally related, and want to have more control over how their superannuation funds are managed. Consider the following two (2) clients. Assume that each issue is material. Skye SMSF The statement of financial position of the Skye SMSF is made up of the only two following account balances at period end: Banks $1.1m and Other Assets $0.15m It is part of the audit methodology of PP to request a Bank Audit Confirmation for any SMSF with a bank balance exceeding $100,000. No bank statements were available, and you drafted a Bank Audit Confirmation and forwarded it to the members of the SMSF for them to sign prior to sending it to the bank. However, you receive an angry email from Skye, saying that she will not sign the Bank Audit Confirmation. You are consequently unable to finalise this audit. Grace SMSF An extract of the statement of financial position of the Skye SMSF contains the following balances: Property $0.5m, Bank $0.2m and ASX Listed Shares $0.8m You have finalised the audit of Property and Bank. You are now focusing on the audit of the ASX listed shares. Current share certificates were inspected to obtain sufficient appropriate audit evidence on the existence and rights & obligations assertions. As part of your audit procedures around the valuation & allocation assertion, you are in the process of multiplying the number of shares held (obtained from the share certificates) by the price listed on the Australian Stock Exchange (ASX) as at 30 June 2022. Your final audited number for ASX Listed shares is $750,000, leaving a variance of $50,000 ($800,000-$750,000). You discuss your findings with GenY, who in turn liaise with the members of the Grace SMSF. The members refuse to change the amount to $750,000 and strongly believe the number of $800,000 is accurate, despite your findings. were inspected to obtain sufficient appropriate audit evidence on the existence and rights & obligations assertions. As part of your audit procedures around the valuation & allocation assertion, you are in the process of multiplying the number of shares held (obtained from the share certificates) by the price listed on the Australian Stock Exchange (ASX) as at 30 June 2022. Your final audited number for ASX Listed shares is $750,000, leaving a variance of $50,000 ($800,000 $750,000). You discuss your findings with GenY, who in turn liaise with the members of the Grace SMSF. The members refuse to change the amount to $750,000 and strongly believe the number of $800,000 is accurate, despite your findings. Required: For both clients, determine the appropriate audit opinion. Justify your response, showing calculations where relevant. Consider using the following table format to provide your answers: Client Audit opinion Justification To create a table in your answer, click on the table icon in the edit menu bar. If the second row of icons is not present click on the 3 dc at the end of the first row to open the next row of icons