Solution-Identify the date on which the directors should

Identify the date on which the directors should sign

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Reference no: EM133007681

Question - You are auditing PRB Ltd for the accounting period ending 31 January 2021. The draft financial statements of PRB were completed on 1st April 2021, the audit report signed on 22nd April 2021 and the annual general meeting took place on 31st May 2021. You are given the following information:

1. A major customer went into liquidation on 5th February 2021. At the balance sheet date, this customer owed PBR £126,000.

2. There was a major flood in the warehouse on 3rd March 2021 which resulted in £195,000 worth of damage to stored inventory.

3. PBR was notified on 30th April 2021 that it was being sued by a former employee for constructive dismissal.

Required -

(i) Identify the types of events reflected in 1-3 above and explain how each event should be treated by the auditor.

(ii) Identify the date on which the directors should sign the financial statements and management letter of representation and explain why this date is important.

(iii) Discuss two matters of concern to auditors that will be decided at the annual general meeting of PRB shareholders.

Reference no: EM133007681

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Identify the date on which the directors should sign

Reference no: EM133007681

Reference no: EM133007681

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