june 2016 question Grains 4U Co (Grains)

This topic has 3 replies, 2 voices, and was last updated 6 years ago by Kim Smith.

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February 11, 2020 at 7:14 pm #561409
reem1589
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in this question part 3ii, could the following audit procedure be acceptable?

event 1- – Review post year end cash receipt to assess the amount of, if any, received from the insurance company
February 12, 2020 at 8:20 am #561454
Kim Smith
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No – as the audit report is “due to be signed shortly” you can’t wait that long. The insurance company has only just started its investigation.
February 12, 2020 at 11:46 am #561470
reem1589
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Noted, i had another doubt in the audit procedure i had thought of while attempting this question could you please inform me if it is reasonable or not, it relates to event 1.

audit procedure: review minutes of board meeting to determine whether any further damages have occurred due to the fire to assess whether any additional disclosure are required.
February 13, 2020 at 8:26 am #561623
Kim Smith
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This Q concerns disclosure of the event which is “the fire” so looking for “additional disclosure” is a bit vague and that there could be further damage seems unnecessary supposition when the scenario has given estimates.
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