[shafiq819]

may I ask.. how come you are charging the depreciation on the basis of the provision made by the company and not on the value of the asset?

[shafiq819]

and when you going concern, in terms of the audit, could the auditor consider whether they would get paid

and when you say liablities need to be looked.. do you mean carry out analytical procedures?

because what the case study says is that.. the company’s yacht was exploded with the two customer abroad and it was an issue with loose connection in engine but anyhow the customer is claiming for £7.2 million in damages.

and so the question asks what aspects should an auditor pay audit focus on. so i was just trying to make sense of what points to consider?

[shafiq819]

okay thanks… so how will this impact the audit i.e what key aspects should an auditor focus on? would paying more attention to the revenue be one due to a bad image because of the claim.
hope i make sense.

thanks

[shafiq819]

thank you.. i am very sorry for bothering you with loads of questions but i just wanted to ask further that is it necessary for the client to notify the auditors of such claims happening if for instance they believe that it wasnt necessary because they had an insurance policy.

[shafiq819]

thank you for your reply sir. Also, i was wondering how online news about the client at engagement level will impact the nature of audit procedures. say for instance, the client was in news for negligent claim?

thanks

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