Your client, Kelting & Company, established a manufacturing facility in a Central American country several years ago
Question:
Your client, Kelting \& Company, established a manufacturing facility in a Central American country several years ago because of the availability of cheap labor. Goods manufactured at this plant are shipped to and sold in the United States. This year the elected government was overthrown, and a military dictatorship is now in power. It is difficult to transfer funds out of the country, and business is suffering some disruption. Export licenses are subject to considerable delay. In addition, the U.S. Congress has imposed duties on goods the client manufactures at its Central American plant.
How are you likely to learn this information? How will this information affect your planning of the current-year audit?
Step by Step Answer:
Auditing An Assertions Approach
ISBN: 9780471134213
7th Edition
Authors: G. William Glezen, Donald H. Taylor