(iii) Minnie Co’s main competitor has filed a lawsuit for $5m against them 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. (4 marks)

Required:
Discuss each of these issues and describe the impact on the audit report if the above issues remain unresolved.
Note: The mark allocation is shown against each of the three issues above. Audit report extracts are NOT required.
(20 marks)