User Account

All Pages

How the information provided impacts the auditor

Assignment Help Accounting Basics
Reference no: EM132823618

One of the clients of MMM Chartered Accountants is a restaurant and you are conducting the 30 June 2019 audit. From January 2019, the business has consistently paid its suppliers late, well in excess of the suppliers' normal credit terms. This has resulted in some suppliers requesting cash on delivery from the business. The auditor has reviewed the correspondence between the business and its bank and finds that the business has been experiencing cashflow problems for two years.

Required

Problem a) Discuss whether there are any events or conditions that may cast significant doubt on the new client's ability to continue as a going concern.

Problem b) Explain whether (and, if so, how) the information provided above impacts the auditor's assessment of preliminary materiality.

Reference no: EM132823618

Questions Cloud

What are some possible underlying causes for the situation : What are some possible underlying causes for the situation? What would you recommend the founder/s they need to do to increase the effectiveness?
How many units must be sold to obtain a targeted income : Income tax rate 40 percent Selling price per unit $3.75 DM per unit $ 0.75 DL per unit $0.25. How many units must be sold to obtain a targeted income
What the research discovered and the types of analysis : Findings - summation of what the research discovered and the types of analysis that were used to describe the findings (tables, figures, and statistical).
Which would be an example of a preventitive control : Which would be an example of a preventitive control and a suitable test of this control? Having a lock on a door where valuable closing stock is stored.
How the information provided impacts the auditor : Discuss whether there are any events or conditions that may cast significant doubt on the new client's ability to continue as a going concern.
Post brief description of the professional or societal issue : Post a brief description of the professional or societal issue you selected. Explain any ethical concerns that might be associated with the issue.
Prepare production budget for the quarter ending on June : The desired ending inventory for each month is 75% of the next month's sales. Prepare production budget for the quarter ending on 30th June
List is the net pension asset or net pension liability : List is the net pension asset or net pension liability at the end of 2021? List is the projected benefit obligation at the end of 2021?
Identify an appropriate healthcare delivery model : Metropolitan Memorial is a large healthcare organization in a major city. The hospital has been providing medical care to the patrons of the state for 10 years.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What journal entry did mardan record on september

The spot rate for yen was $0.0079 on September 1 and the spot rate was $0.0077 on October 1. What journal entry did Mardan record on September 1, 2017

  What will be the effect of the lease on Crescent earnings

The equipment was acquired recently by Crescent at a cost of $207,000. What will be the effect of the lease on Crescent earnings

  Explain the shape of the efficient frontier

Assume you want to run a computer program to derive the efficient frontier for your feasible set of stocks. What information must you input to the program?

  Market rate of interest on similar notes

Whiley Company issued a $100,000, five-year, 10 percent note to Security Company on January 2, 2014. Interest was to be paid annually each December 31. The stated rate of interest reflected the market rate of interest on similar notes.

  What is the amount of the sales taxes

If the sales tax rate is 5% and the balance in the Sales Revenue account amounted to $514500, what is the amount of the sales taxes owed

  Calculate the amount of stans tax at his parents rate

For purposes of the tax on a child's unearned income, calculate Stan's net unearned income. Calculate the amount of Stan's tax at his parents' rate

  Describe a specific audit risk that could arise

You are an audit manager with Clarke & Johnson (CJI). For the past years CJ has been the auditor of luxury Travel Holidays LTD (LTH), a travel company.

  Prepare schedules to compute the profit or loss

Prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2020, 2021, and 2022

  Organic health co is an hmo for businesses in the chicago

organic health co. is an hmo for businesses in the chicago area. the following account balances appear on the balance

  Demonstrate the book value of the investment

Demonstrate the book value of the investment that should be reported at year end by All Good Company. Round to nearest whole dollar.

  What is the purpose of presenting accumulated depreciation

What is the purpose of presenting Accumulated Depreciation in the Balance Sheet and how are you going to differentiate it to depreciation Expense?

  Calculation of employment income

Calculation of employment income - Monopoly Inc. paid premiums of $2,233 to cover private health care for Aidan in 2020

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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