You are auditing Red Pty Ltd (Red) for the year ending June 30 2021. While undertaking the review of subsequent events, you discovered correspondence from one of Reds major debtors, in which the debtor stated that it was experiencing significant financial difficulties and was unlikely to be able to pay its debt in full. It seems that the CFO did not see this letter when preparing the draft financial statements REQUIRED: (i) Outline your responsibilities in this case. (4 MARKS)

(ii) State the assertion that is most impacted in this case.