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You are the assigned audit partner on the audit of Only Orange Ltd, a manufacturer of orange juice in Australia. The financial report date is

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You are the assigned audit partner on the audit of Only Orange Ltd, a manufacturer of orange juice in Australia. The financial report date is 30 June 2022, and the directors' declaration and audit report was signed the 5th August 2022. The financial report accompanied by the signed audit report were released on 9th August 2022. Consider each of the following independent events: 1. On 15th July 2022, your client agreed to purchase for cash the outstanding shares of Snappy Apples Ltd. The acquisition is will introduce a new revenue stream by adding apple juice to the product line and has the potential to double the sales volume of your client. 2. On 28th July 2022, flooding in Queensland results in the loss of a material amount of inventory which will impact the first quarter results of 2023. 3. On 6th August 2022, your client settled and paid a personal injury claim to a former employee as the result of a serious accident that occurred in April 2022. The former employee was seeking compensation of $1.5 million as the accident occurred due to an overlooked problem with one of the machines on the factory floor, but no provision had been made as Only Orange was confident of winning the case. Final settlement was $1.2 million, which is a material amount for Only Orange Ltd. Required: (a) For each of the above events, identify whether it is a non-adjusting or an adjusting event and indicate the recommended response from your audit team [9 marks]. Event Adjusting or non- Recommended response adjusting event

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