Hello, could you tell me if these audit procedures are any good and if so how many marks I would obtain? (FYI the question is for 6 marks but I'm not sure on a few so I have included more than 6).
? Agree the purchase price of the subsidiary ($80M) to the cash book and bank statements to verifiy that the amounts were paid
? Recalculate managements calculation of goodwill, to ensure it has been correctly calculated
? Enquire with management, the likelihood of the contigent consideration being paid
? Obtain a copy of the purchase documentation, to review any T&C's relating to the consideration which may mean it does not need to be paid, and therefore not recognised in the FS
? Obtain evidence of Lynx Co's share price at the acquisition date, to confirm the FV measurement of NCI is accurate and reasonable
? Obtain a copy of the due dilligence report, of Lynx Co for the uplift in PPE - ask for evidence of the uplift in PPE
? Recalculate the PV calculation of the contigent consideration, to confirm it has been correctly discounted. and also the discount factor used is appropiate
Ask the Tutor ACCA AAA
Q4 Eagle Group in Kaplan exam kit - audit procedures in goodwill
I am sorry but as I have answered on other students' posts I cannot provide a marking service.
For exam technique and marking guidance please refer to the resources that I have sticky posted (i.e "star" items) at the top of this forum https://opentuition.com/forum/acca-forums/aaa-advanced-audit-and-assurance-forums
I suggest the "must read", "the most productive 1 hour ..." and "read the mind".
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