An entity is preparing half-yearly financial information in line with PAS 34. The period to be covered by the financial statements is the six months to June 30, 2016. A new PFRS has been published that is effective for periods beginning on or after January 1, 2016. The entity must adopt the PFRS A. In the financial statements for the year to December 31, 2016, only B. At its own discretion C. In its interim financial statements to June 30, 2016, and its annual financial statement to December 31, 2016 D. In its interim financial statements to June 30, 2016, only

An entity is preparing half-yearly financial information in line with PAS 34. The period to be covered by the financial statements is the six months to June 30, 2016. A new PFRS has been published that is effective for periods beginning on or after January 1, 2016. The entity must adopt the PFRS A. In the financial statements for the year to December 31, 2016, only B. At its own discretion C. In its interim financial statements to June 30, 2016, and its annual financial statement to December 31, 2016 D. In its interim financial statements to June 30, 2016, only

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter17: Other Services Provided By Audit Firms

Section: Chapter Questions

Problem 45RSCQ

See similar textbooks

Similar questions

Interim financial reports should be published a. Within a month of the half year-end b. Once a year at any time in that year c. Whenever the entity wishes d. On a quarterly basis
PTD adopts the calendar year as reporting period and publishes interim financial report for the quarter-ended June 30, 2021. Which among the following reports bears correct date/period?I. Statement of Financial Position as of June 30, 2021 and as at December 31, 2020II. Statement of Financial Position as of June 20, 2021 and as at June 30, 2020III. Statement of Comprehensive Income for quarter-ended June 30, 2021, and six months ended June 30, 2021 plus Statement of Comprehensive Income for the period-ended December 31, 2020 and six-months ended June 30, 2020IV. Statement of Changes in Equity for six months ended June 30, 2021 and period-ended December 31, 2020V. Statement of Cash Flows for the six months ended June 30, 2021 and six months ended June 30, 2020.
An entity is preparing its financial statements for the year ended Dec. 31, 2022. Accounts payable amounted to P40,000 before any necessary year-end adjustment related to the following: At Dec. 31, 2022, the entity has a P10,000 debit balance in its accounts payable to Beta Company, a supplier, resulting from a P10,00 advance payment for goods to be manufactured to the entity’s specifications. Checks in the amount of P5,000 were written to vendors and recorded on Dec. 29, 2022. The checks were dated Jan. 5, 2023. What amount should the entity report as accounts payable in its Dec. 31, 2022 statement of financial position?
an entity has an existing note maturing within 12 months from the balance sheet date. The entity has the right to refinance the obligation for 15 months from the report date the obligation should be accounted for as A. Accounted for as a current liability when refinancing was done after the report date and after the issuance of the financial statement, with a corresponding disclosure in the notes regarding the refinancingB. Accounted for as a current liability when refinancing was done on or before the reporting date.C. Accounted for as a current liability when refinancing was done after the report date but before the issuance of the financial statement. D. Accounted for as a noncurrent liability when refinancing was done on or before the maturity date
The following selected transactions relate to contingencies of Classical Tool Makers, Inc., which began operationsin July 2018. Classical’s fiscal year ends on December 31. Financial statements are issued in April 2019.Required:Prepare the year-end entries for any amounts that should be recorded as a result of each of these contingencies andindicate whether a disclosure note is indicated.1. Classical’s products carry a one-year warranty against manufacturer’s defects. Based on previous experience,warranty costs are expected to approximate 4% of sales. Sales were $2 million (all credit) for 2018. Actualwarranty expenditures were $30,800 and were recorded as warranty expense when incurred.2. Although no customer accounts have been shown to be uncollectible, Classical estimates that 2% of creditsales will eventually prove uncollectible.3. In December 2018, the state of Tennessee filed suit against Classical, seeking penalties for violations of cleanair laws. On January 23, 2019, Classical…
Jack Limited, a newly formed company has requested you as a financial consultant for advice on how to account for provisions, contingent liabilities and contingent assets. The company’s year-end is 31 December. REQUIRED The financial controller of Jack Limited has asked you to prepare a brief report which addresses the following: In accordance with IAS 37 – Provisions, Contingent Liabilities and Contingent Assets, discuss the recognition criteria for the following: (i) A provision (ii) A contingent liability (iii) A contingent asset
5. You are assigned to perform a review of minutes of meeting for the year end audit ending December 31, 2021. Which of the following agendas would least likely affect the total liabilities of the entity? Group of answer choices a. The payment of real property taxes for the year 2021 at the beginning of 2021. b. Property dividends declared on December 27, 2021. c. The approval of the board of directors of the issuance of a 5-year term bond last September 2021. d. The settlement of a pending litigation with another entity on January 5, 2022. 6. As the audit associate, you were asked by the senior associate to check the completeness of confirmation letters. Upon your review, there is a supplier that has not yet given their reply. What alternative audit procedure would most likely be performed by the audit associate, assuming the audit is at its wrap-up stage? Group of answer choices a. Perform analytical procedures b. Send another confirmation letter c. Vouch subsequent…
An entity is preparing its financial statements for the first time in accordance with PFRS for SMEs in 2015. If the entity’s fiscal year-end is 30 June 2015, Its date of transition to PFRS for SMEs is Group of answer choices 01 July 2013 30 June 2014 30 June 2015 01 July 2014
Explain briefly the items generally included in a compa-ny’s annual report. (You may use the financial statements appearing in Appendix A to support your answer.)
The entity has collected P20,000 interest during 2020. While P3,700 is recorded in interest receivable on its December 31, 2020 statement of financial position and P10,000 on December 31, 2019. The interest revenue to be reported in the Company’s statement of comprehensive income for 2020 is?
Canton Cave Company provided the following schedule of liabilities on December 31, 2019: Accounts payable Notes payable-bank Interest payable Mortgage payable-10% Bonds payable *Bank notes payable include two separate notes payable to First Bank > AP3, 000,000, 10% note issued March 1, 2018, payable on demand. Interest is payable every six 6,500,000 8,000,000 150,000 2,000,000 4,000,000 months. > A one-year, P5,000,000, 11% note issued January 2, 2019. On December 31, 2019, Canton Cave negotiated a written agreement with First Bank to replace the note with a 2-year, P5,000,000, 10% note issued January 2, 2020. *The 10% mortgage note was issued October 1, 2016 with a term of 10 years. > Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest within 10 days of the date the payment is due. On December 31, 2019, Canton Cave is three months behind in paying its required initial payment. The bonds payable are 10-year, 8% bonds,…
On Jan. 1, 2020, the entity started the preparation of its buildingconstruction. On the same date, it specifically acquired a loan forthe construction. The entity spent P3,000,000 on Jan. 1, 2020 and P5,000,000 on Mar.31, 2021. The loan has a principal amount of P10,000,000, interest of 5% dueevery Jan. 1, maturity date of Jan. 1, 2023, net proceeds ofP9,732,700, and an effective interest rate of 6%. While not yet paidout for the construction, the amount borrowed was temporarilyinvested. Investment income for the two years totaled P480,000. 5. How much is the total capitalizable cost as of Dec. 31, 2021?