June 2013 question 1 requirement a

This topic has 1 reply, 2 voices, and was last updated 7 years ago by Kim Smith.

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August 12, 2018 at 10:32 am #467418

khatun120
Participant

Audit risk regarding taxation is not clear to me. Why it is an audit risks? Bpp kit answer : the charge in the statement of profit or loss 70 does not agree with liability 50 so there must be some misstatement. This sentence is not clear to me. Where does come form liability 50. Please clear me this point

Thanks in advance

August 13, 2018 at 8:30 am #467679

Kim Smith
Keymaster

In the scenario there is SoPL with taxation for the year (projected) $70,000 and in the SoFP under current liabilities there is taxation $50,000.
You can see that both amounts were the same in the previous year ($300,000).
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