Question: The audit for 2009 for MK Ltd has not yet commenced. The estimated audit fee for the audit of the 2009 financial statements amounts to

The audit for 2009 for MK Ltd has not yet commenced. The estimated audit fee for the audit of the 2009 financial statements amounts to K3, 000. The Finance manager was not sure whether or not this fee should be provided for in the 2009 financial statement. You are required to write a memorandum to the directors of MK Ltd explaining the query above. Your answer should refer to the relevant definitions and the necessary legal and accounting requirements (IAS 10 and IAS 24

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