QUESTION 2 (17 marks) As the audit manager assigned to the audit of Daffy Ltd (Daffy), you are currently in the completion phase. Final materiality has been set at R900 000 . The following issues were identified during the audit: - Daffy's computerised wages program is backed up daily. However, for two months during the period under audit, the wages records and the backups were corrupted and could therefore not be accessed. The wages for these two months amounted to R1.1 million. - Daffy's main competitor has filed a lawsuit for R5 million against the company, alleging a breach of copyright. This case is ongoing and will not be resolved prior to the audit report being signed. The matter is correctly disclosed as a contingent liability. You are required to: 2.1 Discuss the impact that the above-mentioned issues will have on the audit opinion 2.2 Draft the opinion and basis for opinion paragraphs for the two above-mentioned issues. QUESTION 2 (17 marks) As the audit manager assigned to the audit of Daffy Ltd (Daffy), you are currently in the completion phase. Final materiality has been set at R900 000 . The following issues were identified during the audit: - Daffy's computerised wages program is backed up daily. However, for two months during the period under audit, the wages records and the backups were corrupted and could therefore not be accessed. The wages for these two months amounted to R1.1 million. - Daffy's main competitor has filed a lawsuit for R5 million against the company, alleging a breach of copyright. This case is ongoing and will not be resolved prior to the audit report being signed. The matter is correctly disclosed as a contingent liability. You are required to: 2.1 Discuss the impact that the above-mentioned issues will have on the audit opinion 2.2 Draft the opinion and basis for opinion paragraphs for the two above-mentioned issues