QUESTION $1(20$ marks, $30$ minutes$)$

You have recently obtained your BCom qualification, and your university lecturer has requested you to take the position of a tutor for Auditing level $2$ students. Having taken the position as a tutor, the students posed the following questions during your session on the topic below.

"The auditor is often described as the guard dog of his$/$her client and the public in general. An audit increases the credibility of the financial statements and plays an important role in the capital markets of the world".

Required:

The students requested you to:

$1\mathrm{.}1.$ List the possible benefits of an audit; you are also required to name the parties that will benefit from an audit. $(10$ marks$)$

$1\mathrm{.}2.$ List the postulates in auditing that assist an auditor with solving problems. Considering that an auditor must have the ability to solve problems and must be able to provide a solution. $(10$ marks$)$