Question: AUDITING subject: As per the contract which has been signed between a trade union and the management, the pay increase of employees will be backdated

AUDITING subject:

As per the contract which has been signed between a trade union and the management, the pay increase of employees will be backdated to 1 January 2020, resulting in a charge equal to 10 % of profit. Management have agreed to the pay increase, however, they have not made any adjustments to the 30 June 2020 financial report.

Question: What type of auditor's report should you issue? Explain the reason for your answer.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

AUDITING subject: As per the contract which has been signed between a trade union and the management, the pay increase of employees will be backdated to 1 January 2020, resulting in a charge equal to...

Question 1 (10 marks) Car Cheap Ltd is a publicly listed company that retails budget-priced car parts and accessories to the public. The company has 45 stores across Australia, and six warehouses,...

For each of them following situations identify the type of Audit Opinion that should be given and briefly state a reason. a)An auditor was auditing the financial statements of Binnings for the first...

Please fully answer the following questions about the case in your report: Summarize and discuss the core issue in the case. Do not repeat the entire case details but only pertinent information at...

Topic 4 O SAFETY AND HEALTH AT WORK OCCUPATIONAL SAFETY AND HEALTH ACT 1994 COMPILATION OF CASE STUDY (MICHAEL CASE) - Infographic Filing Guidance Questions: 1. Can a young person work with machinery...

Financial Statement analysis - Homework case number 4. Accounting for Software Revenue Recognition Is Computer Associates Being Too Aggressive? Annual Revenues at Computer Associates (CA) dropped...

Good afternoon, I need to answer the questionnaire "GENERAL BUSINESS RISK ASSESSMENT QUESTIONNAIRE" on section 3 of the case. Thank you ABC, INC. A Comprehensive Decision Based Case, 4th Edition,...

What changes in methods, testing, or acceptance of the engagement would any of the following have for you: 1) Significant global operations including 3 rd world countries 2) Significant new...

The T-accounts for Equipment and the related Accumulated Depreciation Equipment for Ada Company at the end of 2014 are shown here. In addition, Ada Companys income statement reported a loss on...

Make a class named as Calculation.cs. Make a desktop app for calculation purpose. Take two numbers and perform calculations on them. All the calculations code should be written in a class. Now use...

Tea Morton Inc (TMI) has a fiscal year-end on December 31. The following are thefinancial statements for the years ended December 31, 2023, and December 31,2024. The following information is also...

The two lines of regression of the variables x and y are 4x + 2.4y =20 and 1.6x +4y =12. The coefficient of correlation between x and y is (A) 0.49 B) - 0.49 (C) 0.35 (D) -0.35