During the trial, Mary K. Cline, senior auditor for Deloitte, Haskins and Sells stated:“Well, we made a lot of judgments during the audit, and we were auditing the balance sheet asof May 31, and there was no reason in my judgment to look at this number after May 31.”6a. Should the oversale of lifetime partnerships be classified as a subsequent event?b. Should Deloitte have evaluated the sales occurring after the balance sheet date of May 31, 1984?c. Should L&H have been aware of the sales limits on lifetime memberships? If so, whatshould they have done about it?

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What is the required treatment of each of the below events in the financial statements? Justify your decisions.    a) On 25 July 20X9, Carey settled and paid a claim involving prior employees alleging sexual discrimination as a result of promotions announced at the Christmas party in 20X8. Five women who had been overlooked for management promotions undertook legal action in March 20X9.   b) On 1 August 20X9, Carey Ltd made an announcement to the Singapore Stock Exchange of its intention to take over a private engineering partnership. This would increase sales revenue of Carey Ltd by 15%. It was to be funded by a 1:10 rights issue.   c) On 12 August 20X9, a fire damaged the head office of Carey. The buildings, fixtures and fittings were only partly insured.   d) At its 5 September 20X9 meeting, Carey’s board of directors voted to double the advertising budget for the coming year and authorised a change in advertising agencies.

You are a partner incharge of the audit for Bargin Ltd, a private company. The finishing of the audit report is pending for the income year 2018 and you have recorded some situations where possible action is required They  are listed below: Bargin Ltd, carries its property, plant, and equipment accounts at current market values. Current market values exceed historical cost by a highly material amount, and the effects are pervasive throughout the financial statements. Management of Bargin Ltd, refuses to allow you to observe, or make, any counts of inventory. The recorded book value of inventory is highly material. You were unable to confirm accounts receivable with Bargin Ltd, customers. However, because of detailed sales and cash receipts records, you were able to perform reliable alternative audit procedures. One week before the end of fieldwork, you discover that the audit manager on the Bargin Ltd, engagement owns a material amount of Bargin Ltd,  common stock. You relied…