Reference no: EM132700741
Question - Jonas Worth is the engagement partner for the financial report audit of Caufield Ltd for the year ended 31 December, 20X7. The following material events or transactions have come to Wood's attention before he is scheduled to issue his report on 28 February, 20X8.
a) On 3 January, 20X8, Caufield Ltd received a shipment of raw materials from korea. The materials had been ordered in October 20X7, and shipped FOB shipping point in November 20X7
b) On 15 January, 20X8, the company settled and paid a personal injury claim of a former employee as the result of an accident that occurred in March 20X0. The company had not previously recorded a liability for the claim
c) On 25 January, 20X8, the company agreed to purchase for cash the outstanding shares of La Trobe Electrical Ltd. The acquisition is likely to double the sales volume of Caufield Ltd
d) On 1 February, 20X8, a plant owned by Caufield Ltd was damaged by a flood, resulting in an uninsured loss of inventory
Required - For each of the above events or transactions, discuss audit procedures that should have brought the item to the auditor's attention, and indicate the treatment required in the financial report. Give reasons for your decision.
|
How much is the initial cost of the equipment
: PRECLUDE PREVENT Co. acquired an equipment for 448,000 on account, How much is the initial cost of the equipment
|
|
Find what is the pertinent entries
: Find what is the pertinent entries? On january 1 20x1 RESTRAIN TO CURB CO issued 1000, P 2 000, 10% 3 year bonds for P 1 903 927.
|
|
What is the value of the option-osceola electronics inc
: Osceola Electronics, Inc., has developed a new HD DVD. If the HD DVD is successful, the present value of the payoff (at the time the product is brought to marke
|
|
What is the entry to record the restructuring of the loan
: What is the entry to record the restructuring of the loan payable. An entity has defaulted in its two annual interest payments on an existing loan payable.
|
|
Discuss audit procedures that should have brought item
: Discuss audit procedures that should have brought the item to the auditor's attention, and indicate the treatment required in the financial report
|
|
What is the value of the american put today
: As an option trader on GM stock, you have collected the following information:
|
|
Value of the call option-ervin corp
: The price of Ervin Corp. stock will either be $61 or $90 at the end of the year. Call options are available with one year until expiration.
|
|
What issues do they have concerning their location
: Preparation Stage-who are you going to interview, and why are you interested in this retail business - what issues do they have concerning their location
|
|
Identify which option of equipment should the company accept
: Identify which option of equipment should the company accept based on discounted pay back method if the payback criterion is maximum 2 years
|