Tutorial Question form book that Auditing and Assurance Services in Australia, Sixth Edition Revised

chapter 4 , 4.24

consider the following independent situation ,all of which apply to audits of entities for the year ending 30 June 2015

(A) Clothing Ltd (clothing )has been manufacturing uniforms for Australian market for 20years. A recent government tariff reduction policy has placed clothing in direct competition with cheaper uniforms manufactured overseas.in a bid to retain its market share clothing has been selling part of its school uniform range at below cost

(B) Foodstuffs Ltd is a large supermarket chain with offices in the capital cities around Australia. From 1/1/2015 , data processing relating to payroll transactions will be carried out in each capital city by an independent computer service bureau instead of the company's head office IT department

(C) Machinery Ltd (Machinery) has been experiencing declining sales over the last two years.Cost cutting has proved difficult due to the high level of imported materials used in Machinery's operations and consequently margins have been falling. While the banker are presently happy continue providing Machinery with loan facilities, they do expect to see improved result in the next financial report. Articles about Machinery's expected financial results appearing in recent press reports all had quite pessimistic tone.