Digwell Mining Company operates in the Nkawkaw Community of the Eastern Region as a Sand Wining Company. The youth of the area had been opposing the activities of the company of late. Dr. Digtempo Bush, the Managing Director of Digwell Mining Company approached DelMax & Associates, a Chartered Accounting firm to accept an attest engagement to examine and report on the environmental issues of Digwell Mining Company Ltd. for the year ended 31st December, 2021.

Required:

(i) Evaluate the environmental issues that may lead to the risk of misstatements in the Financial Statements.

(ii) Recommend the actions and the audit procedures that DelMax & Associates should undertake when they realize that Digwell Mining Company Ltd. has environmental issues that may affect the Financial Statements.

Answer rating: 100% (QA)

I The environmental issues could be related to unauthorized sand mining and drilling th... View the full answer