Reference no: EM132660849
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:
Problem 1: 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.
Client Accounting, Treatment ,Justification respectively .
|
Police Systems and Practices
: Although many police agencies today are rethinking their organization and goals, many still function in a hierarchical manner.
|
|
Explain any 5 financial ratios of any candian firm
: Explain any 5 financial ratios of any candian firm
|
|
State legislators successful at legislating
: How are state legislators successful at legislating? What new legislation would you propose for the state of Texas?
|
|
Compute the dividends received deduction for Crane
: Crane and Loon corporations, two unrelated calendar year C corporations, Compute the dividends received deduction for Crane Corporation
|
|
Explain audit procedures that should have brought the item
: Explain audit procedures that should have brought the item to the auditor's attention, and indicate the treatment required in the financial report
|
|
Healthcare Financial Management
: According to the textbook, consumer-driven health plans often rely on large deductibles funded via a health savings account framework.
|
|
Identify different pieces of information that are relevant
: Identify three different pieces of information that are relevant in your workplace. For each piece of information, identify an official and authoritative source
|
|
What are the top three things in your life
: What are the top three things in your life that have most influenced your viewpoints on sex and sexuality (some things to consider: religion, friends, family.
|
|
Compute Prance total income tax expense
: Prance earns an after-tax rate of return on capital of 8%. Compute Prance's total income tax expense, current income tax expense, deferred income tax expense
|