You are auditing Safe tours for the year 30 June 2020. The financial report will be signed by the directors on 31 July 2020 with the auditor's report signed on the same date. The audited financial report will be issued on 8th August 2020. After 30th June 2020, the following information has come to light.

1. On 4th July 2020 a property owned by Safe tours Ltd was ruined by a flood resulting in an uninsured loss of inventory.

2. On 14th July Jungle Tours, one of the Safe Tours major client's went into liquidation. Jungle Tours had invoices dating 8th June 2020.

 

Required:

For each of the above identify the following:

1. Type of subsequent event.

2. How each even will impact on the financial report for 30th June 2020.

Answer rating: 100% (QA)

In the given question two subsequent events occurring after 30th June 2020 are being evaluated for t... View the full answer