Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
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Chapter 14, Problem 21RQSC
To determine
Auditing: Auditing refers to the examination of the financial statement of an entity and verifying whether the books of accounts are maintained as per the required law or not. The auditing process includes gathering evidence, evaluating it, and preparing a final report on the whole evaluation.
The meaning of dual dating, the dates which an auditor can put in an audit report, and the dating convention that yields the least responsibility of the auditor.
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While completing your audit work for the 30 June 2019 audit of Greenfield Ltd, you become aware of the following material matters:
On 5 July, Blue Pty Ltd, a major customer of Greenfield Ltd, was placed into liquidation. As Blue Pty Ltd had confirmed the balance due to Greenfield Ltd as at balance date, management of Greenfield Ltd has refused to write off or provide for the Blue Pty Ltd account in the 30 June 2019 financial report. However, they are prepared to disclose this information as a note to the financial report.
On 15 July, Greenfield Ltd entered into a new contract to supply wine to Wine Taster, a major new wine store that had set up operations in northern South Australia. The contract was similar in nature to other contracts previously negotiated with other wine stores. Management does not believe that any change to the financial report is required.
Greenfield Ltd has capitalised significant funds incurred in developing an improved new wine cap that allows the wine to…
While completing your audit work for the 30 June 2019 audit of Greenfield Ltd, you become aware
of the following material matters:
1. On 5 July, Blue Pty Ltd, a major customer of Greenfield Ltd, was placed into liquidation. As Blue
Pty Ltd had confirmed the balance due to Greenfield Ltd as at balance date, management of
Greenfield Ltd has refused to write off or provide for the Blue Pty Ltd account in the 30 June 2019
financial report. However, they are prepared to disclose this information as a note to the financial
report.
II. On 15 July, Greenfield Ltd entered into a new contract to supply wine to Wine Taster, a major
new wine store that had set up operations in northern South Australia. The contract was similar in
nature to other contracts previously negotiated with other wine stores. Management does not
believe that any change to the financial report is required.
III. Greenfield Ltd has capitalised significant funds incurred in developing an improved new wine cap
that allows the…
While completing your audit work for the 30 June 2019 audit of Greenfield Ltd, you become aware of the following material matters:
I. On 5 July, Blue Pty Ltd, a major customer of Greenfield Ltd, was placed into liquidation. As Blue Pty Ltd had confirmed the balance due to Greenfield Ltd as at balance date, management of Greenfield Ltd has refused to write off or provide for the Blue Pty Ltd account in the 30 June 2019 financial report. However, they are prepared to disclose this information as a note to the financial report. - DONE
II. On 15 July, Greenfield Ltd entered into a new contract to supply wine to Wine Taster, a major new wine store that had set up operations in northern South Australia. The contract was similar in nature to other contracts previously negotiated with other wine stores. Management does not believe that any change to the financial report is required. DONE
III. Greenfield Ltd has capitalised significant funds incurred in developing an improved new wine cap that…
Chapter 14 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
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