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You are the auditor of TCG. On 14 January 2019, you were told that one of TCG's debtors has been declared bankrupt. The debtor in question recently lost a court case and was ordered to pay compensation, the amount of which caused the debtor severe financial difficulties. The debts owed to TCG at balance date was $29 million.

You are the auditor of TCG. On 14 January 2019, you were told that one of TCG's debtors has been declared bankrupt. The debtor in question recently lost a court case and was ordered to pay compensation, the amount of which caused the debtor severe financial difficulties. The debts owed to TCG at balance date was $29 million.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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You are the auditor of TCG. On 14 January 2019, you were told that one of TCG's debtors has been declared bankrupt. The debtor in question recently lost a court case and was ordered to pay compensation, the amount of which caused the debtor severe financial difficulties. The debts owed to TCG at balance date was $29 million. Additional information: • Annual balance date: 31 December 2018 Completion of audit fieldwork: 25 February 2019 Signing of audit report: 1 March 2019 Publication of financial statements: 14 March 2019 Required: State what the auditor will either do or request Management to do. Justify your response.
Transcribed Image Text:You are the auditor of TCG. On 14 January 2019, you were told that one of TCG's debtors has been declared bankrupt. The debtor in question recently lost a court case and was ordered to pay compensation, the amount of which caused the debtor severe financial difficulties. The debts owed to TCG at balance date was $29 million. Additional information: • Annual balance date: 31 December 2018 Completion of audit fieldwork: 25 February 2019 Signing of audit report: 1 March 2019 Publication of financial statements: 14 March 2019 Required: State what the auditor will either do or request Management to do. Justify your response.
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