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

Incremental costing analysis, Fleet Bhd operates a chain of high street ret...

Fleet Bhd operates a chain of high street retail outlets selling clothing and household items. In 1995, this company was heading for a financial loss and was deemed to have lost st

Checking consolidation papers, Checking consolidation papers The audito...

Checking consolidation papers The auditor pays particular attention to the calculation of: Goodwill arising on acquisition and consolidation Pre-acquisition and post-

King&queen, a) Would King & Queen be liable to EFL? Provide specific case ...

a) Would King & Queen be liable to EFL? Provide specific case references to support your answer.

Auditors procedures - audit process, Auditors Procedures - Audit Process ...

Auditors Procedures - Audit Process The relevant authority on post balance sheet events is ISA. The preparation of loss and profit account and balance sheet will forever inclu

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

Classification of individual business risk, Classification of Individual Bu...

Classification of Individual Business Risk Individual business risk can be low or high impact and low or high likelihood. Here are some illustrations for a satirical magazine.

Auditor''s duties - audit of current assets, Auditor's Duties - Audit of Cu...

Auditor's Duties - Audit of Current Assets The auditor's duties can be summarized as follows: a) The accounting ascertaining policies adopted through the entity for pri

Audit, Why is studying Auditing different from studying other accounting to...

Why is studying Auditing different from studying other accounting topics?

Valuation of debtors, Valuation of Debtors Debtors are valued simple l...

Valuation of Debtors Debtors are valued simple like other assets at the lower of cost and total realisable value. Valuation of debtors is actually a consideration of where the

Presentation and disclosure - audit of accounting estimates, Presentation a...

Presentation and Disclosure - Audit of Accounting Estimates An enterprise should involve the following information relating to a discontinuing operation in its financial state

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