Audit procedures and materiality

The following audit procedures $($APs$)$ were included in the audit plan by the audit senior:

AP$1$: Trace a selection of sales orders received from the pre$-$numbered order form to the signed delivery note, the invoice and the general ledger entry and agree all details.

AP$2$: Compare the monthly payroll expense of $2023$ to that of the corresponding months of $2022$ and follow up on any significant differences.

AP$3$: Select an inventory item from the inventory listing, physically count the items in the warehouse and agree the number of items to the number of items recorded on the inventory listing.

The materiality of the financial statements as a whole and performance materiality were calculated by the audit senior to be R$500000$ and R$400000$ respectively. The audit team documented that the cost of sales amount disclosed in the financial statements was overstated by R$200000.$ The total of other misstatements identified by the audit team amounted to R$200000.$ Management refused to correct any of the misstatements identified.

$4.$ With reference to the information under audit procedures and materiality:

$4\mathrm{.}1$ For each of the audit procedures AP$1$ to AP$3,$ state

$4\mathrm{.}1\mathrm{.}1$ the account balance being tested by the procedure $(4(1)/(2))$

$4\mathrm{.}1\mathrm{.}2$ whether the audit procedure is a substantive analytical procedure or a

substantive test of detail $(4(1)/(2))$

$4\mathrm{.}1\mathrm{.}3$ the management assertion that each audit procedure is intended to

address $(4(1)/(2))$

$4\mathrm{.}2$ Explain what the difference is between sufficient audit evidence and

appropriate audit evidence. $(2)$

$4\mathrm{.}3$ Explain what type of audit opinion the engagement partner will issue for

the audit of the financial statements of All Things Nice for the year ended

$30$ June $2023,$ considering the misstatements identified. $(4(1)/(2))$