You are a quality control specialist in your CPA firm. This includes being available for consultation on
Question:
You are a quality control specialist in your CPA firm. This includes being available for consultation on various professional practice matters.
Below are independent and unrelated situations that are on your desk right now that are pending your expertise:
The Company under audit received a forgivable loan from the government in 2023 for $ 1,000,000. This was used to buy equipment that had an original cost of $ 5,000,000 and a useful life of 5 years and was depreciated using the straight line method with no residual value. As long as the Company maintains existing employment levels, the loan does not have to be paid back.
What audit work should we do related to this event in 2023?
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley