The Ministry of Magic, the regulator of businesses, is conce eporting that was produced by Eeylops Owl Emporium Ltd he emporium had not indicated that it was discontinuing a c or the last financial year it had not included an acquisition C heet, which it had purchased some three months before the Explain why the regulator is concerned with such oversights

Contemporary Auditing
11th Edition
ISBN:9781337650380
Author:KNAPP
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Chapter1: Comprehensive Cases
Section1.1: Enron Corporation
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The Ministry of Magic, the regulator of businesses, is concerned about the public financial
reporting that was produced by Eeylops Owl Emporium Ltd. The Ministry was aware that
the emporium had not indicated that it was discontinuing a division of its business and that
for the last financial year it had not included an acquisition of a new building in its balance
sheet, which it had purchased some three months before the end of the financial year.
Explain why the regulator is concerned with such oversights and what the emporium is
required to do in each case.
Transcribed Image Text:The Ministry of Magic, the regulator of businesses, is concerned about the public financial reporting that was produced by Eeylops Owl Emporium Ltd. The Ministry was aware that the emporium had not indicated that it was discontinuing a division of its business and that for the last financial year it had not included an acquisition of a new building in its balance sheet, which it had purchased some three months before the end of the financial year. Explain why the regulator is concerned with such oversights and what the emporium is required to do in each case.
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