Reference no: EM132950203
Question - You, CPA, have just completed the audit of XYZ Company for the year-end March 31, 2021. It is currently June 1, 2021 and the Auditor's Report Date is expected to be on June 15, 2021.
As part of your responsibilities for reviewing subsequent events between the balance sheet date (March 31, 2021) and the auditor's report date (June 15, 2021), you have asked for documentation on XYZ's subsequent events, specifically requesting copies of the minutes of XYZ's board of director's meetings and audit committee meetings.
You have e-mailed the Controller of XYZ Company for a copy of all board of director's meeting minutes and audit committee meeting minutes between March 31, 2021 and up to the current date (June 1, 2021) and the Controller has responded as follows:
"Hi CPA, hope you are well. I have received your request for a copy of the board and audit committee meeting minutes. All the board and audit committee meeting minutes are stored on a single laptop in our office and unfortunately, there was a fire in our office space yesterday evening which resulted in several pieces of office equipment and supplies getting damaged. The laptop that stores all of the meeting minutes has been damaged and is no longer usable. As a result, unfortunately, all of the meeting minutes have been lost and we cannot provide you with the documents you have requested. I am sorry but there is nothing we can do, we have tried to recover the files several times. Please let me know if this would impact the audit report for the year-end March 31, 2021".
After you received the above e-mail from the Controller, you have a discussion with the Audit Manager of the engagement and you both assess that this could have a material and pervasive impact on the audit.
REQUIRED -
a) Explain how the auditor report of XYZ Company for the year-end March 31, 2021 may be impacted if the requested meeting minutes cannot be obtained and if this would have a material and pervasive impact on the audit.
b) If obtaining meeting minutes up to the auditor's report date is not possible, describe three (3) other procedures that can be performed by the auditors to identify and evaluate the potential for subsequent events.
|
What should the manufacturing overhead budget indicate
: What should the manufacturing overhead budget indicate for cash disbursements for manufacturing overhead for the month of September
|
|
Find how much is the balance of brooklyn capital
: Anthony, Brooklyn, and Cali are partners sharing profits in the ratio of 5:3:2, How much is the balance of Brooklyn's capital, after the admission of Damian?
|
|
Prepare the journal entries to record the bonds
: Tamarisk Inc. issued $870,000 of 20-year, 10% bonds on January 1, 2020, at 102. Prepare the journal entries to record the bonds
|
|
How much is the final income tax on the said interest
: Jack, a non-resident citizen, received P100,000 interest, net of the applicable final tax, from BPI. How much is the final income tax on the said interest
|
|
Explain how the auditor report of XYZ Company
: Explain how the auditor report of XYZ Company for the year-end March 31, 2021 may be impacted if the requested meeting minutes cannot be obtained
|
|
How much is included as current asset in financial statement
: Bad, a real estate company, entered into a contract, How much is included as current asset in the financial statements of Bad related to the above information?
|
|
Name at least one stakeholder that is harmed
: Questions 1. What fundamental(s) of capitalism are involved in this case?
|
|
How to use mind-mapping in qualitative data analysis
: Explain how to use mind-mapping in qualitative data analysis.
|
|
Calculate the remeasurement gains or losses on pension plan
: Calculate the remeasurement gains or losses on pension plan assets and liabilities that will be included in OCI for the year ended 31 December 2012
|