Q5. Ben & Co, a listed company, with Profit before Tax of GHS24.7million, received a letter on 7th January 2019 indicating that Naa & Co, one of its customers, had gone out of business and that no money was to be recovered. At its year end 31" December 2020, Ben & Co was owed GHS1.1 million by Naa & Co. Ben & Co had inventory to the value of GHS0.7million (at cost) which was purchased specifically to supply Naa & Co-the inventory would need to be altered at a cost of GHS.04million in order to sell it to any other customer. The directors of Ben & Co are refusing to write off the debtor or write down the inventory. You are required to suggest the most likely form of audit report in the above situation.

Q5. Ben & Co, a listed company, with Profit before Tax of GHS24.7million, received a letter on 7th January 2019 indicating that Naa & Co, one of its customers, had gone out of business and that no money was to be recovered. At its year end 31" December 2020, Ben & Co was owed GHS1.1 million by Naa & Co. Ben & Co had inventory to the value of GHS0.7million (at cost) which was purchased specifically to supply Naa & Co-the inventory would need to be altered at a cost of GHS.04million in order to sell it to any other customer. The directors of Ben & Co are refusing to write off the debtor or write down the inventory. You are required to suggest the most likely form of audit report in the above situation.

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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