Acquarelle Co’s Accounts Payable figure included a sum of Rs 60.2 million in respect of leaves which was wrongly computed, resulting in an overprovision of Rs 18.7 million. A sum of Rs 4.3 million due to a supplier which was included in the Accounts Payable where the accuracy of the figure could not be ascertained. Rs 16.6 million relating to Administrative Expenses was not included under accruals in the current financial year .Utilities bills amounting some Rs 4.5 million were wrongly accrued. The Statement of Cash Flow was not prepared in line with
Acquarelle Co’s Accounts Payable figure included a sum of Rs 60.2 million in respect of leaves which was wrongly computed, resulting in an overprovision of Rs 18.7 million. A sum of Rs 4.3 million due to a supplier which was included in the Accounts Payable where the accuracy of the figure could not be ascertained. Rs 16.6 million relating to Administrative Expenses was not included under accruals in the current financial year .Utilities bills amounting some Rs 4.5 million were wrongly accrued.
The Statement of
a)Briefly give your views on this situations
b)state what type of auditor’s report should be issued and explain your choice.
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