The company is evolution mining

Assignment Questions There are three sections to this assignment. Each section is worth 10 marks. Each section includes a component for communication skills. Communication with clients is an imperative necessity for auditors and excellent writing skills are expected from professional accountants, therefore please write your answers carefully and clearly. You will lose marks for poor presentation, spelling mistakes or grammatical errors. SECTION 1 Section 1 - Part A Determine the level of materiality to be used for the audit of the group accounts for the year ending in 2021. Your answer should include a discussion of the nature of materiality, and a description of what materiality represents in terms of the audit of a set of financial statements and should discuss the different bases and considerations employed in arriving at materiality. Explain the rationale behind your choice of a certain level of materiality. You must also provide a quantitative estimate of materiality for your company. Some Guidance to help answer Section 1 - Part A This part asks you to define and discuss the use of materiality in auditing. Please refer to Chapter 7 of the text and Lecture 5.(and 9). You are pretending to be the auditor of your designated company. The materiality figure has to be set by you as a dollar amount. It is not in the Auditor's Report. You have to justify why you set this amount. Section 1 - Part B Review the various draft notes and disclosures accompanying the draft annual report. Highlight at least 3 disclosures that may have significance to the audit, e.g., Contingencies, and outline the audit procedures that you will need to perform. Some Guidance to help answer Section 1 - Part B Review the notes of the company, looking for interesting issues that may require the auditor to examine carefully. Contingencies (Chapter 17, Lecture 11), related parties, subsequent events, valuation issues, are good examples of what might be interesting issues. Explain the auditor's responsibilities in relation to these issues, and how can these responsibilities be addressed