Question refers to the disposal of Broadway which before current year. But it says there is a profit of 25 included. If it was prior year why profit is included this year ??
Also can we point out wrong calculation of profit as an audit risk ?
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Dec 2013- stow group
6y ago#1In the original Q the y/e for the group is 31 December 2013 and the disposal of Broadway was on 1 September 2013 - so the disposal is during the current year.
And yes - as long as you can give a reason the profit may be miscalculated you can describe this as an audit risk - as in the model answer. So just to say it may be misstated would earn no marks - but to point out that the profit would be overstated if, for example, profit for the 8 months to the date of disposal has not been included in the carrying about would earn marks.
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