What work would the auditor perform to ensure

Assignment Help Financial Accounting

Reference no: EM133633837

Question: Puzzle Limited is a company manufacturing, selling and laying carpet tiles, currently preparing financial statements at 31 December 2015. Under the terms of sale, Puzzle gives a warranty, under which it agrees to make good manufacturing or laying defects that become apparent within three years after the date of laying. Independent inspectors would determine if making good was best done by repair or replacement. On the basis of past experience, the company expects that 3 per cent of sales will be the subject of a claim for making good, of which two-thirds will result in repair or replacement.

State whether you believe the above matter would give rise to a provision under IAS 37, giving your reasons. If a provision is recognized, what work would the auditor perform to ensure that it is the best estimate of costs to be incurred?

Reference no: EM133633837

Questions Cloud

Explore strategies and practices for responsible e-waste : Students would explore various strategies and practices for responsible e-waste management, such as recycling, refurbishing, or proper disposal methods.

What nursing diagnoses can be derived from the problems list : Develop a problem list from the objective and subjective data. What nursing diagnoses can be derived from the problems list?

What amount should be recognized as compensation expense : What amount should be recognized as compensation expense for the current year and what amount should be recognized as compensation expense for 2021

Compose example financial statements for your company : Compose example financial statements for your company as a nonprofit entity and as a governmental entity. Ensure all information is entered accurately

What work would the auditor perform to ensure : State whether you believe the above matter would give rise to a provision under IAS 37, giving your reasons. If a provision is recognized, what work would the

What would be the value based on todays share price : If you had invested $5,000 in Class A stock and $5,000 in Class B on December 31 of 2016, what would be the value based on today's share price? Would you sell

Create a description of the clinical issue to be addressed : To assess a clinical issue that is the focus of your Quality Improvement Project. Create a description of the clinical issue to be addressed in the project.

How would the accounting standard amendment aasb 2018 : How would the accounting standard amendment AASB 2018 - 3 (Reduced Disclosure Requirements) relevant to the 2019-2020 financial statements effect an accounting

Discuss the stakeholders who would oppose the proposed idea : Discuss the stakeholders who would oppose proposed idea. Explain why they would be in opposition and how you prepare to debate or converse about considerations.

User Account

All Pages