Reference no: EM132819203

Question - Completion and Review - You are auditing Lifetime Tours Ltd for the year ended 30 June 2018. The financial report will be approved and signed by the directors on 30 July 2018, with the auditor's report signed on the same date. The audited financial report will be issued on 12 August 2018. The following information came to light:

1. On 15 July 2018, one of Lifetime tour clients, Jungle Adventures, went into liquidation. Jungle Adventures purchased travel packages in bulk. A letter from the solicitor dated 30 July 2018 indicated that creditors were likely to receive $0.10 in the dollar. At 30 June 2018 Jungle Adventures owed lifetime tours $1,200 000 and Lifetime Tours had provided for 10% of the money owed as a doubtful debt.

 2. On 10th August 2018, a private bus transporting a Lifetime Tours tour group in New Zealand crashed. Some passengers on board the bus including the Lifetime tours Guide and the driver had minor injuries. Lifetime Tours is concerned about the negative publicity relating to the crash.

Required - For each situation above, assess the type of subsequent event and how each would impact Lifetime Tours' financial report for the year ended 30 June 2018, if at all.