19-9月p7冲刺直播p7讲义p7知识模块3 audit evidence.pdfVIP

Recommend the prin al audit proc res to be performed in the audit of: Evaluate the audit risks to be considered in planning the audit of the financial statements, and identify and explain any additional information that would be relevant to your evaluation; Comment on the matters to be considered, and explain the audit evidence you should expect to find in your review of the audit working papers. IAS36 Impairment When there is an indicator of potential impairment of the assets, management should have conducted an impairment review to determine the recoverable amount The recoverable amount is the greater of the fair value less cost to sell and the value in use of the assets. As a cash generating unit the impairment should firstly be allocated against any goodwill relating to the cash generating unit and then be allocated against the remaining assets on a pro-rata basis. Impairment of the PPE 2014/06 Q3(a) Comment on the matters to be considered and explain the audit evidence you should expect to find during your review of the audit working papers in respect of each of the issues described above.(8 marks) You are an audit manager in Rose Co, responsible for the audit of Cooper Co. You are reviewing the audit working papers relating to the financial year ended 31 January 2014. Cooper Co is a manufacturer of chemicals used in the agricultural industry. The draft financial statements recognise profit for the year to 31 January 2014 of $15 million (2013 – $20 million) and total assets of $240 million (2013 – $230 million). Cooper Co’s factories are recognised within property, plant and equipment at a carrying value of $60 million. Half of the factories produce a chemical which is used in farm animal feed. Recently the ernment has introduced a regulation stipulating that the chemical is phased out over the next three years. Sales of the chemical ar