Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

You are the supervisor on audit of Platinum Pokie Club, a large suburban club in the Western Australia. And the usual club facility such as poker machines, bars and a bistro, the club also operates a large gymnasium, an indoor heated pool and the restaurant. 

The subsequent dates are relevant to the current audit engagement:

End of reporting period                      30 June 2012
Financial statements signed                15 August 2012
Auditor’s report signed                      15 August 2012
Annual report mailed to members        22 August 2012
 
 
You are attentive that the subsequent independent and material events have happened:

1. On 5 August 2012, the financial controller informed you that the board has just received a letter from assistant general manager, Mr. Tan. The letter having a confession: Mr. Tan has been lodging fraudulent expenditure claims over the precedent five years, amounting to some $40,000. The financial controller’s preliminary estimates indicate that this figure is materially correct; however he thinks it will take at least another 2 months before the exact figure is known. The police had been informed of the fraud and are searching for Mr. Tan, who seems to have left the country. 

2. On 17 August 2012, the financial controller informed you that on the preceding day a participant on one of the club’s aerobics classes, Ms. Peters, injured herself after slipping on gym floor. Ms. Peters is the spouse of one of the state’s leading barristers. A preliminary letter has already been acquired from Mr. Peters, stating that Ms. Peters intends to take legal action to recover the costs of medical treatment, plus damages, from the club. 

3. On 18 August 2012, the financial controller informed you that a serious fire taken place at one of the club’s kitchens throughout football celebrations. Though covered by insurance, the fire caused extensive damage to the bistro area and adjacent bar. Both the bistro and bar are expected to remain unserviceable until at least mid-September, resulting in an expected fall in revenue of around 7%.

4. On 23 August 2012, the general manager informed you that at 18 August 2012 the board decided to sell land it was holding as a long term investment. It seemed that an extremely generous offer was made by an overseas buyer. The contract is due to be signed on 25 August 2012. 

5. On 11 August 2012, the board signed a contract for the upgrade of the club’s air-conditioning system. The upgrade is essential to ensure compliance with workers compensation regulations. The first payment of $100,000 is due on 1 September 2012. Work will be completed (and the final contract payment made) by 30 June 2012.

Required

(a) Elucidate what further evidence you would seek in relation to each of these matters.

(b) Illustrate the action, if any, you would recommend to management in relation to the accounting treatment of each items.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91600

Have any Question? 


Related Questions in Accounting Basics

1 many firms are relying on cloud computing also known as

1. Many firms are relying on cloud computing, also known as "the cloud," to perform key business functions. By moving transactional processing to the cloud, firms are exposing themselves to additional attacks as well as ...

Accounting information systemsquestion 1a describe five

Accounting Information Systems Question 1 a) Describe five technologies that can support electronic commerce. b) List and explain five main reasons for implementing AIS in organizations. c) What is the role of a database ...

Comprehensive problem 1morgan companys balance sheet at

Comprehensive Problem 1 Morgan Company's balance sheet at December 31, 2016, is presented below. Morgan Company Balance Sheet December 31, 2016 Cash $30,000 Accounts Payable $12,250 Inventory 3050 Interest Payable 300 Pr ...

Assignmentair france-klm af a franco-dutch company prepares

Assignment Air France-KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF's financial statements and disclosure notes for the year ended Decemb ...

Learning outcomescode descriptiona1 in-depth and systematic

Learning outcomes Code Description A1 in-depth and systematic understanding of key investment concepts to facilitate strategic real estate investment decision-making A4 critical awareness and understanding of the evolvin ...

Accounting discussiona local movie theater owner explains

Accounting Discussion A local movie theater owner explains to you that ticket sales on weekends and evenings are strong, but attendance during the weekdays, Monday through Thursday, is poor. The owner proposes to offer a ...

Accounting assignmentaccounting is the study of how

Accounting Assignment Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording busi ...

Question 1the financial statement that shows revenue and

Question 1 The financial statement that shows revenue and expenses for a period of time is the A. balance sheet. B. income statement. C. statement of owner's equity. D. statement of cash flows. Question 2 If a company's ...

Kent cpa is a staff auditor participating in the audit

Kent, CPA is a staff auditor participating in the audit engagement of Fort, Inc. Based upon each of the circumstances below, indicate whether or not Kent's actions impair his independence. Explain your response for each ...

Guidelines for literature critiquesstudents are require to

Guidelines for Literature Critiques Students are require to read and understand assigned article. Students must submit a critique of assigned academic article. Please follow the format to complete your assignment. Detail ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro