For the following independent events, assume that each has a material effect on the financial statements. The
Fantastic news! We've Found the answer you've been seeking!
Question:
a. 15 February 2020: You found that the audit client had just announced its intention to merge with another company within the next few months.
b. 28 February 2020: You found that a major customer of your audit client had gone bankrupt on 1 February 2020 after reporting substantial losses for three consecutive years. Answer all of the following questions.
Required: For each of the two events above, explain the auditor’s responsibilities and the correct accounting treatment for the event
Related Book For
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
Posted Date: