audit assurance, Auditing

Assignment Help:
You are the auditor of ABC Company and the audit process is almost complete. The audit report is due to be signed next week. However, the following additional information on two material events has been presented to you. The company’s year end was on 30 June 2012.

Event 1 – Occurred on 10 July 2012
The new products scheduled to be marketed in August 2012 have been found to be unsafe for use. The company estimated that the value of inventory of RM250,000 has to be revalued at RM100,000.

Event 2 – Occurred on 5 August 2012
Production of the company’s factory was stopped for one day due to the machine breakdown.
a) Justify whether the events are adjusting or non-adjusting events according to ISA 10 Events after the Reporting Period. *
i. State whether Event 1 is adjusting or non-adjusting event. Explain why you say so. ii. State whether Event 2 is adjusting or non-adjusting event. Explain why you say so.

Related Discussions:- audit assurance

Attempts to define true and fair, Attempts to define True and Fair It...

Attempts to define True and Fair It must be concluded that there has been slight attempt precisely to define fair and true. The Companies Act needs an auditor to report in

Audit procedures, Explain appropriate audit procedures you would apply in v...

Explain appropriate audit procedures you would apply in verification of cheque payments.

Advantages and disadvantages of internal audit?, Benefits of Internal Audit...

Benefits of Internal Audit are following: It is in-expensive. No charted accounted is needed to audit internally. Faults will be removed before preparing financial stateme

Banks, Banks The Authoritative documents are: The Central Bank of...

Banks The Authoritative documents are: The Central Bank of Kenya Act, The Companies Act Cap 486. IAS 30 Disclosure in the Financial statements of Banks and Similar

Define master data management, (a) Define each of the following four concep...

(a) Define each of the following four concepts. -Master Data Management -Data Quality -Data Governance -Cloud Computing Explain how they relate to the various Busine

Why audit of procurement is considered important, The Department of Higher ...

The Department of Higher Education (DoHE) in the Ministry of Education awarded a contract for support of 60 computers to My IT Co. Ltd. and the contract conditions required the del

#titl Assessment Criteria Sheets Risk analysis report Sue.., Assessment Cr...

Assessment Criteria Sheets Risk analysis report Subject Learning Outcome: To examine techniques used by auditors, including risk analysis, evidence collection and evaluation Below

Conformity and conservatism - external auditor report, Conformity and Conse...

Conformity and Conservatism - External Auditor Report Conformity Although the user of the accounts expects the accounts to conform to general accepted accounting princi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd