6. Miller Ltd.'s directors do not agree with certain paragraphs of AASB121 The Effects of Changes in Foreign Exchange Rates and decide to present an additional alternate Income Statement In the notes to the accounts with which you concur. 7. Martin Ltd changed from the straight-line method to the declining balance method of depreciation for all newly acquired assets. This change has no material effect on the current year's financial statements but is reasonably certain to have a substantial effect in later years. The change has been disclosed in the notes to the financial statements 8. Your client's solicitor's letter reveals that the company is being sued by a major customer for a material amount. The legal action relates to an event the occurred in a prior year. Your client is very confident of winning the case and refuses to disclose it in the financial report 9. You are completing the audit of Jackson Limited. The audit manager has found errors in accounts receivables to the value of $35,000. The auditors' preliminary judgement about materiality is $515,000 while performance materiality for accounts receivables is $40,000. 10. 10 A significant amount of the client's accounting records were destroyed by recent floods prior to balance date and no alternative means of preparing factual financial statements exists. The client has prepared a set of financial statements based on "best estimates