audit assurance, Auditing

Assignment Help:
You are the auditor of ABC Company and the audit process is almost complete. The audit report is due to be signed next week. However, the following additional information on two material events has been presented to you. The company’s year end was on 30 June 2012.

Event 1 – Occurred on 10 July 2012
The new products scheduled to be marketed in August 2012 have been found to be unsafe for use. The company estimated that the value of inventory of RM250,000 has to be revalued at RM100,000.

Event 2 – Occurred on 5 August 2012
Production of the company’s factory was stopped for one day due to the machine breakdown.
a) Justify whether the events are adjusting or non-adjusting events according to ISA 10 Events after the Reporting Period. *
i. State whether Event 1 is adjusting or non-adjusting event. Explain why you say so. ii. State whether Event 2 is adjusting or non-adjusting event. Explain why you say so.

Related Discussions:- audit assurance

Historic costs methods - long term contracts, Historic Costs Methods - Long...

Historic Costs Methods - Long Term Contracts You will notice such this exercise is completely dependent on the company estimating its further costs.  This is wherever the audi

Audit evidence, State four factors considered determining sufficiency of a...

State four factors considered determining sufficiency of audit evidence

Comparison of the negative and positive methods, Comparison of the Negative...

Comparison of the Negative and Positive Methods Negative Method According to this method of circularisation, the customer is asked to communicate only when he does not ag

Dealings with directors and other parties, Dealings with Directors and Othe...

Dealings with Directors and Other Parties - Sundry Debtors and Loans Dealings along with directors and other related parties: The auditor's duties are follows as: i. The revi

Reliability - sources of evidence, Reliability - Sources of evidence R...

Reliability - Sources of evidence Reliability of audit evidence is influenced through its nature and its source and since it is dependent upon the specific circumstances, we c

Systems based audit approach, Systems Based audit approach The basis of...

Systems Based audit approach The basis of IAS 400, Risk Assessment and Internal Control. The term systems audit refers to the typical audit approach to medium and large comp

Over head, project report on absorption of overhead and its different meth...

project report on absorption of overhead and its different method

Furniture, Furniture, Fixtures and Disposal of Non-Current Assets Fur...

Furniture, Fixtures and Disposal of Non-Current Assets Furniture, fixtures and fittings The only matter here to note is the depreciation of fittings and fixtures.  Since

Write Your Message!

Captcha
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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd