Posh Perfumes has been in existence, importing perfume, for a number of years. The managing director...
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Posh Perfumes has been in existence, importing perfume, for a number of years. The managing director had built up the business using contacts he already had in the industry. The company imports only one brand of perfume which is manufactured exclusively by one company. The perfume is distributed via 'shops within shops' at 20 branches of a well-known store. Under this agreement, Posh Perfumes pays a percentage of its takings to the store, with a minimum annual payment of $10,000 per store. The audit is nearing completion but you have just heard that the French manufacturer is facing serious financial difficulties and that supplies have ceased. Required (a) Set out the further information the auditor would require before reaching his audit opinion. Set out the possible forms of report that the auditor may issue. (b) Posh Perfumes has been in existence, importing perfume, for a number of years. The managing director had built up the business using contacts he already had in the industry. The company imports only one brand of perfume which is manufactured exclusively by one company. The perfume is distributed via 'shops within shops' at 20 branches of a well-known store. Under this agreement, Posh Perfumes pays a percentage of its takings to the store, with a minimum annual payment of $10,000 per store. The audit is nearing completion but you have just heard that the French manufacturer is facing serious financial difficulties and that supplies have ceased. Required (a) Set out the further information the auditor would require before reaching his audit opinion. Set out the possible forms of report that the auditor may issue. (b)
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a In order to reach an audit opinion the auditor would require further information regarding the fol... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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