FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- SG Motor Cars Co (PSG) manufactures a range of motor cars, and its year end is 30 June 2020. You are the assistant audit manager of Intermiami & Co and are currently preparing the audit programmes for the year-endaudit of PSG. You have had a meeting with your audit manager, and he has notified you of the following issues identified during the audit risk assessment process:Land and buildingsPSG has a policy of revaluing land and buildings; this is undertaken on a rolling basis over a five-year period. During the year PSG requested an external independent valuer to revalue a number of properties, including awarehouse purchased in January 2020. Depreciation is charged on a straight-line basis.Work in progressPSG undertakes continuous production of cars, 24 hours a day, seven days a week. An inventory count is to be undertaken at the year end and Intermiami & Co will attend. You are responsible for the audit of work inprogress (WIP) and will be part of the team attending the count…arrow_forwardBDB independent with respect to the audit of Unigate's 2021 financial statements?\\nc. Basma Mirza, a senior auditor, is aware that under SEC rules her accounting firm should not conduct appraisal or valuation services for a public company audit entity. However, her manager has requested that she appraise some specific large inventory items to verify the company's accounting estimates as part of the audit.\\nd. Heath & Associates, CPAs, is the auditor of Halifax Investments, Inc., a public company. Heath earns most of itsarrow_forward
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