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Q4 Eagle Group in Kaplan exam kit - audit procedures in goodwill

Ppenelope5y ago
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
KimKimTutor5y ago#1
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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