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Problem 1: You are completing the audit for D Ltd which has a yearend of 30 June 2020. You are due to sign the audit report on the 21st August 2020 and the company will release the accounts on the 20th of August 2020. On the 21th of August 2020, you hear on the news that the company's largest customer, which represents 80% of its income has gone into liquidation. There was no provision for doubtful debts recognised in the financial statements. What is your responsibility as the auditor?
a) Discuss the matter with management and determine if the accounts need to be amended. Perform additional testing if they are. b) No responsibility. You have completed all your audit procedures and signed the report. Your job is done. c) Notify ASIC of a potential going concern risk. d) Perform additional audit testing to determine if the accounts need to be adjusted or not as a type one subsequent event.
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you have just been hired by opendoor corporation the manufacturer of a revolutionary new garage door opening device.
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