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Audit Approach - Audit of Accounting Estimates
The accounting and auditing matters are mainly concerned along with recognizing the point in time at that the initial disclosure even happens, and also ensuring about lonely suitable costs are involved in any provision for restructuring such is established. Suitable formats must be required for the information to be disclosed.
The key auditing issues arising are such the auditors should confirm when they agree along with the company's view as to require for disclosure of proposed or real discontinuance, and which they agree that the company's disclosures are suitable for.
Typical process would involve:
(i) Determine the client's policies and process in respect of discontinuing operations
(ii) Review board minutes and another relevant management documentation
(iii) Make enquiries of management in important disposals of investments and assets
(iv) Examine after date information
(v) Confirm the makeup of discontinuing operations through reference to supporting such documentation.
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