- This topic has 3 replies, 2 voices, and was last updated 11 years ago by
.
- Posts
Suppose that it asks about matters that should be considered with regards to a given scenario like an acquisition of a subsidiary or a failing business trying to obtain a new bank loan to survive. What matters do I have to consider , I mean do I have to consider the reporting consequences(qualifications) , do i consider the risks of material misstatement or anything else? This sort of wording has been featured many times like in Clooney co and Juliet company , december 10 and june 10 respectively.
Well, I think if you read the publishers’ answers, would realise that the matters to be considered include accounting issues, ethical issues, professional matters as well as legal issues
From memory, the P7 examiner is looking primarily for the accounting issues, but doesn’t close the door on other matters as well
Is that ok?
Thanks for your reply. So what can be accounting issues in a situation like the business is failing , its assets are impaired, profits are falling etc?
Going concern? Redundancy costs? Potential for management to break the law by showing fraudulent preference for a creditor (or group of creditors) above the other creditors? Was last year’s audit opinion appropriate? What has caused the company to start suffering this year?
- You must be logged in to reply to this topic.