Apple keyboard function keys not working with iPad 2

I just purchased the latest Apple bluetooth keyboard, model A1314, to use with my iPad 2 running iOS 4.3.5. Keyboard paired flawlessly and typed fine, but none of the function keys worked. No volume control, no brightness controll, no scrolling features. The Apple wireless keyboard MC184/YB model also had the same problem. Is this a compatibility issue or bug?

Then I took the keyboard to the

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