Auditing 9th Edition Allan Millichamp, John Taylor - Solutions

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Bangi Chemicals Ltd make chemicals for the defence industry. They had no subsidiary companies but in mid 20x7, they acquired 60 per cent of the share capital of an American company for £6m paid partly in cash and partly in shares in Bangi. The net assets of the American company, Chemola Inc., were
Tickitt & Run, the auditors to Daffodil Ltd, gave an unqualified report on 14 December 20-7 on the accounts for the year ending 30 June 20-7. These accounts were seen by The Wednesfield Bank PLC in September 20-8 and the bank lent £250 000 to Daffodil on short-term overdraft on 19 September 20-8.
Horsebox, Postillion & Co. are a city firm of Chartered Certified Accountants. The firm’s accounts are produced by the administration partner but are subject to audit by Blanket, Mange, another firm of Chartered Certified Accountants. In June 20-6, a partner in Horsebox who was suffering from
Cuthbert Ltd outsources most of its accounting function to Speedy Accounting Services Ltd. They have found the relationship with Speedy very effective. However, recently it has come to Cuthbert’s attention that the statements of account sent by Cuthbert’s main supplier have not been
Pingo Manufacturing Ltd imports electronic components and assembles them in a factory to make consumer gadgets which appeal to a younger market. They have traded have traded successfully for many years because of favourable market conditions and extended their factory in 20x6 with the aid of a very
Tickitt & Run are auditors of the Zombrit Group PLC. The accounts for the year ending 31.12..20x7 are being subjected to the final review. The following matters have been noted by the audit manager:a. The company has engaged in a number of long-term contracts in the Far East. During the last few
Tickitt & Run have just completed the audit of Gofaster Motors Ltd for the year ended 31 December 20x7. They asked one of the audit staff to draft the audit report and he produced this:‘Report of the auditors to Gofaster Motors Ltd Basis of opinion We conducted our audit in accordance with

Auditing 9th Edition Allan Millichamp, John Taylor - Solutions

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