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Question - Bigger is Better Ltd (Bigger) manufactures at its Hobart based plant wind turbines for the agricultural market in Australia. Bigger is the market leader and has dominated the Australian market over the past 10 years because of its superior technology. You are the auditor of Bigger and recently you read in the Financial Review that Bigger's main competitor has developed a wind turbine that is 25% more efficient than Bigger's turbine.
Required -
(a) Discuss why this situation represents an audit risk.
(b) Identify the main account(s) affected by this risk and the audit work you would plan to undertake in response to the risk.
Accumulated temporary tax liability difference related to future years is P550, 000. Prepare the journal entry to adjust the deferred tax liability at the end
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