Question
a)Your firm is the external auditor of Dalton City Ltd (Dalton), a football club, for the year ended 31 May 20X8. On 30 April 20X8
a)Your firm is the external auditor of Dalton City Ltd (Dalton), a football club, for the year ended 31 May 20X8. On 30 April 20X8 Ron Osborne commenced legal proceedings against Dalton. Ron is the former team manager who was dismissed by Dalton on 31 March 20X8 and is claiming substantial damages for breach of contract. The directors of Dalton dispute the claim. If the claim is successful, the damages are likely to be material to the financial statements of Dalton for the year ended 31 May 20X8 but will not affect the going concern status of Dalton. List the audit procedures that your firm should undertake in respect of the legal claim by Ron.
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