You have found the following information in an audit report. Which section did you find it from? CARRYING VALUE OF EXPLORATION AND EVALUATION ASSETS Area of focus The Group has incurred exploration and evaluation costs for exploration projects in Victoria over a number of years. The Group holds the right to explore and evaluate those projects through tenement and licence agreements. There is a risk that the Group may lose its right to further explore and evaluate those areas of interest and therefore amounts capitalized to the statement of financial position from the current and historical periods be no longer recoverable. How our audit addressed it Our audit procedures included: - Understanding and vouching the underlying contractual entitlement to explore and evaluate each area of interest, including an evaluation of the requirement to renew that tenement at its expiry. - Examining project spend per cach area of interest and comparing this spend to the minimum expenditure requirements set out in the underlying tenement expenditure plan; - Examining project spend to each area of interest to ensure that it is directly attributable to that area of interest. - A other information OB. Basis of opinion OC Key audit matters OD. Emphasis of matter OE Other matters
You have found the following information in an audit report. Which section did you find it from? CARRYING VALUE OF EXPLORATION AND EVALUATION ASSETS Area of focus The Group has incurred exploration and evaluation costs for exploration projects in Victoria over a number of years. The Group holds the right to explore and evaluate those projects through tenement and licence agreements. There is a risk that the Group may lose its right to further explore and evaluate those areas of interest and therefore amounts capitalized to the statement of financial position from the current and historical periods be no longer recoverable. How our audit addressed it Our audit procedures included: - Understanding and vouching the underlying contractual entitlement to explore and evaluate each area of interest, including an evaluation of the requirement to renew that tenement at its expiry. - Examining project spend per cach area of interest and comparing this spend to the minimum expenditure requirements set out in the underlying tenement expenditure plan; - Examining project spend to each area of interest to ensure that it is directly attributable to that area of interest. - A other information OB. Basis of opinion OC Key audit matters OD. Emphasis of matter OE Other matters
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:QUESTION 11
You have found the following information in an audit report. Which section did you find it from?
CARRYING VALUE OF EXPLORATION AND EVALUATION ASSETS
Area of focus
The Group has incurred exploration and
evaluation costs for exploration projects in
Victoria over a number of years.
The Group holds the right to explore and
evaluate those projects through tenement and the requirement to renew that tenement at its
licence agreements.
There is a risk that the Group may lose its
right to further explore and evaluate those
areas of interest and therefore amounts
capitalized to the statement of financial
position from the current and historical
periods be no longer recoverable.
How our audit addressed it
Our audit procedures included:
– Understanding and vouching the underlying
contractual entitlement to explore and evaluate
each area of interest, including an evaluation of
-
expiry.
- Examining project spend per each area of
interest and comparing this spend to the
minimum expenditure requirements set out in
the underlying tenement expenditure plan;
-Examining project spend to each area of interest
to ensure that it is directly attributable to that
area of interest.
A. Other information
OB. Basis of opinion
OC. Key audit matters
OD.
Emphasis of matter
OE Other matters
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