ANSWER ANY 5 QUESTION FROM QUESTIONS 1 - 6 QUESTION 1 In accordance with ISA 500 "Audit Evidence" an auditor should obtain "sufficient" and "appropriate" audit evidence to be in a position to draw reasonable conclusions on which to base the audit opinion. You are the audit manager concerned with the audit of Superb Lifts Plc and are reviewing the following items of evidence that have been obtained during the course of the audit: 1. A bank reconciliation prepared by the accounts department of the client; 2. A payables confirmation letter from a supplier of Superb Lifts Plc; 3. A copy of an article in the trade press stating that the profits of Superb Lifts Plc had increased by 25% upon the acquisition of another company; 4. Inspection of the registration documents relating to the directors' cars which were all in the name of the directors and subject to a leasing agreement; 5. A receivables confirmation letter stating that a number of invoices sent by Superb Lifts Plc were in dispute and had been outstanding for a number of months and were still not resolved; 6. A photocopy of the title deeds relating to the head office building. REQUIRED (a) Explain in your own words the meaning of "sufficient" and "appropriate" in relation to audit evidence and provide relevant examples to illustrate your answer. (4 marks) b) For each of the above items 1-6, state with reasons the reliability of the evidence and also describe an additional item for each that you would seek to support your audit opinion. (12 marks) (c) Describe and explain TWO procedures for obtaining audit evidence. (4 marks) TOTAL 20 MARKS