Oscar Wylee Women Glass Ltd is a supplier of fashion women sunglasses. The audit report for the year ended 30 June 2021 was signed on 8 August 2021, and the financial report was mailed to shareholders on 12 August.

Consider the following independent events. Assume that each event is material.

• On 5 July, Oscar Wylee entered into a new contract to deliver sunglasses to Specsavers, a new major department store. The contract was similar to other previously contracted contracts.
• Oscar Wylee has financed huge funds in developing a new type of solid sunglasses lens. On 8 July, Oscar Wylee applied for a patent for the lens, only to identify that a competitor had lodged a similar application on 25 June. The granting of Oscar Wylee's application is now of major concern.
• One of Oscar Wylee's major customers, Phoenix Pty Ltd, suffered a fire on 23 July. Since Phoenix Pty Ltd was uninsured, it is unlikely that their accounts receivable balance will be paid.
• On 27 July, a well-known financial planner advised his clients not to invest in Oscar Wylee due to poor long-term growth prospects. The market price for Oscar Wylee Accessories' shares subsequently declined by 50%.

Required:

For each of the individual misstatements listed, explain auditors' responsibility and consequence auditing report.

Answer rating: 100% (QA)

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