PURPOSE OF AN AUDIT The financial statements of Chaos Ltd, a listed European company, show the following amounts on year end 31 Dec 2015 Revenue 120 Mio Profit before taxation 25 Mio Net assets 460 Mio In July 2015 legal proceedings were instigated for a serious breach of health and safety legislat...

Answer Adjusting events are events that occur after the date of financial statemen ...

PURPOSE OF AN AUDIT The financial statements of Chaos Ltd, a listed European company, show the following

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PURPOSE OF AN AUDIT

The financial statements of Chaos Ltd, a listed European company, show the following amounts on year-end 31 Dec 2015

Revenue	€ 120 Mio
Profit before taxation	€ 25 Mio
Net assets	€ 460 Mio

In July 2015 legal proceedings were instigated for a serious breach of health and safety legislation amounting to € 10 Mio. The directors of Chaos Ltd have not included a provision as the payment is only expected after 31 Dec 2018.

The consequence for the audit?

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Modern Advanced Accounting in Canada

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Authors: Hilton Murray, Herauf Darrell

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PURPOSE OF AN AUDIT The financial statements of Chaos Ltd, a listed European company, show the following

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Modern Advanced Accounting in Canada

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