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You are the audit senior on the audit of Harmony Pty Ltd, a large manufacturing company, for the year ended 30 June 2017

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You are the audit senior on the audit of Harmony Pty Ltd, a large manufacturing company, for the year ended 30 June 2017. It is now 25 August, 2017 and you are reviewing the audit working papers prepared by your audit assistant, Susan Jones, and notice the following matters:

(a) Susan attended the stocktake on 30 June and observed that the client followed the stocktake instructions. She selected numerous items for test inventory from the client's inventory sheets and all were found to be correct. Cut-off details were noted and subsequently checked and found to be correctly treated. Susan concluded that inventory was fairly stated.

(b) Susan selected 20 invoices to test the control that the sales clerk checks that prices agree with the authorised price list. She found 3 instances where the sales clerk had not signed the "prices checked" box in the invoice. The sales manager explained that the sales clerk always checks the prices but sometimes forgets to sign the box. As the prices on all the invoices agreed with the authorised price list, Susan concluded that the control was operating satisfactorily.

(c) As part of her work on subsequent events, Susan noted that there were a large number of returns in July of Product 75L. However, as this product was first sold in June and represented only 1% of sales for the year, Susan concluded that the amount was immaterial and no further work was necessary.

(d) Advertising expenses are material, although the expenses this year are only half (50%) of last year's balance for advertising expenses. Susan selected a large sample of entries and agreed them to supporting documents. No errors were found. Susan concluded that advertising expenses was reasonable.

(e) As part of the verification work on accounts payable, Susan carried out a search for unrecorded liabilities. She tested a random sample of 20 payments made after 30 June, 2017 and found 3 instances of payments that related to services provided in June, which had not been accrued. However, as the total of the 3 payments was immaterial, she concluded that no adjustment was required for unrecorded liabilities.

Required: For each of the five scenarios presented above, indicate whether you believe that sufficient appropriate audit evidence has been obtained to support the conclusions reached. Give reasons for your decision. Please note, the scenarios are related.