User Account

All Pages

How the information provided impacts the auditor assessment

Assignment Help Accounting Basics
Reference no: EM132826261

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 company has also broken its debt covenants for the year and they are currently working with the bank to negotiate longer payment terms to assist them.

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: EM132826261

Questions Cloud

How the issue could become an initiative under arizona law : In a 500-750-word "Letter to the Editor," propose an initiative for an educational issue that you feel needs to be addressed. Include a plan about how this.
Explain whether the audit team should continue to tender : McGrath and Partners Chartered accounting firm, Explain whether the audit team should continue to tender for the audit work of Harris Ltd. Reference
How much Interest Revenue will HdG record on March : HdG has a fiscal year end of December 31. How much Interest Revenue will HdG record on March 31, 2020, the first annual installment payment date
Discuss about the first amendment arguments : Responses you could make to the First Amendment arguments that are consistent with the cases in the assigned readings. Prepare this assignment according to the.
How the information provided impacts the auditor assessment : MMM Chartered Accountants, Explain whether (and, if so, how) the information provided above impacts the auditor's assessment of preliminary materiality.
What type of account is accounts receivable and why : List the 5 main types of accounts and indicate whether they are found on the income statement or the balance sheet? What type of account is accounts receivable
How would you handle the situation : Imagine that the cell phone you have confiscated has readily visible sexually inappropriate messages on it. How would you handle the situation?
How much is the liability as of december : How much is the liability as of December 31, 2021? A plate is offered to customers sending in two coupons accompanied by a remittance of P2.
Define distinct diverse groups within us student population : Describe two distinct diverse groups within the U.S. student population. To help an educator gain knowledge of each diversity group, cite source information to.

Reviews

Write a Review

Accounting Basics Questions & Answers

  A new customer orders a single item which obviously can be

rand company sells fine collectible statues and has implemented activity-based costing. costs in the shipping

  What is gross profit recognized for coffin corporation

Cost of installment sales $680,000, cash collection on 2019 sale $350,000, and cash collection on 2020 sale $450,000. What is gross profit recognized in 2019?

  What errors could occur during the program development

What errors or fraud could occur during the program development process and how will you go about detecting these errors and fraud?

  Calculate xyz company prime costs

XYZ Company recorded the following information related to their inventory accounts for January: January 1 January 31 Direct materials 30,000 36,000.

  Determine the inspection activity cost per unit

Lexter Company incurred an activity cost of $180,000 for inspecting 25,000 units of production. Determine the inspection activity cost per unit

  Amount and character of the gain

What is the amount and character of the gain, loss or income that must be recognized by you as a result of the distribution of the SubCo stock?

  How information affects the reported cost of inventory

Jawhara Company completed its inventory count. It arrived at a total inventory value of SR500,000. how information affects the reported cost of inventory

  A boat costing 108000 and uninsured was wrecked the very

1. quirch inc. manufactures machine parts for aircraft engines. the ceo chucky valters was considering an offer from a

  What is the current price of a share of starbucks stock

What is the current price of a share of Starbucks stock (include the date of your post and your source)? What were the high and low prices of a share of Starbucks stock during the past year. What is the current price of a share of Starbuck's close..

  Assume that only one product is to be produced in the

a company makes two models

  Compute unit costs and prepare cost reconciliation schedule

Started with 3000 units that are 60 % Materials 45,000, Compute unit costs and prepare a cost reconciliation schedule

  Prepare journal entries for each of the transactions

Willingham Company had the following transactions involving notes payable. Prepare journal entries for each of the transactions

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