Question
Assume you are an auditor and you are facing the following separate and independent situations, the effects of all items below are material: You are
Assume you are an auditor and you are facing the following separate and independent situations, the effects of all items below are material:
You are the auditor of BML Ltd (BML). You have identified a material misstatement of the property, plant and equipment account. BML has not changed its depreciation rates for the past four years. However, recent technological changes in the industry have convinced you that the useful lives of BML's assets need to be adjusted downwards, resulting in an increased depreciation charge. BML's directors have refused to make any change to the depreciation rates, despite you explaining that this will put them in breach of the requirements regarding depreciation as contained in Australian accounting standards.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started