plz solve it within 30-40 mins I'll give you multiple upvote Assume, Mr. Abdul Wasey is appointed as auditor in Galaxy Marbles Company. During the audit,he observed that the company is seriously violating tax laws. He observed that the companyunderstated its sales to mitigate the VAT (Value Added Tax). The actual sales of the company areOMR 700,000 but they were under stated as OMR 600,000. The rate of VAT is 2%.RequiredQ1. What would the auditor do to report this irregularity?Q2. How much tax is mitigated by the company by understating sales?

In this case, the amount of sales was understated by OMR100,000. (Actual sales - Understated sales…

Answered: e auditor do to report this…

Business

Accounting

e auditor do to report this irregularity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

plz solve it within 30-40 mins I'll give you multiple upvote

Assume, Mr. Abdul Wasey is appointed as auditor in Galaxy Marbles Company. During the audit,
he observed that the company is seriously violating tax laws. He observed that the company
understated its sales to mitigate the VAT (Value Added Tax). The actual sales of the company are
OMR 700,000 but they were under stated as OMR 600,000. The rate of VAT is 2%.
Required
Q1. What would the auditor do to report this irregularity?
Q2. How much tax is mitigated by the company by understating sales?

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