Key notes from review of director meeting minutes               3. 12/03/19 The directors noted that they will engage a property valuer to assess the fair value of the Group’s investment properties at 30 June 2019.   Explain what audit significance this matter would have, and two actions they should take to address it.

Describe the audit expectations gap in the UK and globally, discuss recent developments concerning this gap and debate the recommendations of the Brydon Report for 2019 to deal with this gap.

Analyse and explain how the following situation would affect the audit report for the financial year ended on 31 December 2020. The client company, Explorer Ltd, has included $4 million mineral leases in the financial statement, which are valued by the client using fair value methodologies. However, to be able to realise the value of the mineral lease balance, additional funding is required to successfully commercialise the mineral leases. It’s uncertain that the client is able to obtain this additional funding. The auditors believe that the information is adequately disclosed by the client in the footnote of the financial report. The carrying value of the mining lease represents 6% of reported net profit for the 2020 financial year, whereas the client’s materiality is 5% of reported net profit.

Which of the following audit objectives is to validate the assertion of valuation and allocation? *   A. All recorded investments on the statement of financial position exist     B. All recorded income from investments has accrued to the entity at the reporting date     C. All investments owned by the entity at the reporting date are included on the statement of financial position and all income accruing from investments has been recorded     D. Investments are included on the statement of financial position at appropriate amounts

Explain (with reasons) how and where (including class/category where applicable) each of theevents/transactions described below would be treated, recognised and/or disclosed in thefinancial reports of Vurture Ltd for the year ended 30 June 2021.Note: You need to consider whether information about the event or transaction needs to bepresented separately. Journal entries and actual disclosure notes are NOT required.(a) On 5 July 2021, the government announced new regulations relating to the sale anduse of the flying exo-suits. Part of the new regulations require that from 1 September2021 exo-suits can only be sold to persons who have a 'Flying Exo-Suit Permit'. A personmust apply to the government for a permit and pay a fee of $400. The permit must beprovided before an exo-suit can be sold. Vulture sells two types of exo-suits: aneconomic exo-suit and an advanced exo-suit, and sales have been increasing forVulture Ltd over the last 3 years. There is expected to be a significant increase…

2. An audit firm is required to perform a risk assessment in order to determine whether to accept the new client or continue with repeat clients annually.   Question 2 options:   a) True   b) False