BC Pty Ltd is in the entertainment business. Its main revenue is from licensing arrangements.

Analyse BCs financial statements for the financial years ended 30 June 2017 and 30 June 2018.

Write report that highlights unusual relationships in the figures.

Your audit focus is on the year-end figures as at 30 June 2018.

a) What anomalies can you find?

b) What questions would you raise?

c) What balances and transactions will be priority items in your audit?

BC PTY LTD - Profit and Loss Statements as at 30 June 2017/2018 Less Expenses Administrative Expenses Artist royalties Audit fees Depreciation of fixed assets Directors' fees Interest on bank overdraft Leases and rents Wages and salaries Total Expenses Operating Profit (loss) Add Retained Earnings 01 July Retained Earnings at 30 June 35,000 397,000801,200 465,900 BC PTYLID - Balance Sheet as at 30 June 201/ and 2018 Current Liabilities Bank Overdraft Term Loans: due within 12 months Accounts Payable Total Current Liabilities Non-Current Liabilities Mortgage Total Liabilities Net Assets Shareholders' Funds Ordinary Shares of $2 each Retained Earnings (accumulate losses) Total shareholders' Funds Write report that highlights unusual relationships in the figures. Your audit focus is on the year-end figures as at 30 June 2018. - a) What anomalies can you find? -b) What questions would you raise? -c) What balances and transactions will be priority items in your audit? BC PTY LTD - Profit and Loss Statements as at 30 June 2017/2018 Less Expenses Administrative Expenses Artist royalties Audit fees Depreciation of fixed assets Directors' fees Interest on bank overdraft Leases and rents Wages and salaries Total Expenses Operating Profit (loss) Add Retained Earnings 01 July Retained Earnings at 30 June 35,000 397,000801,200 465,900 BC PTYLID - Balance Sheet as at 30 June 201/ and 2018 Current Liabilities Bank Overdraft Term Loans: due within 12 months Accounts Payable Total Current Liabilities Non-Current Liabilities Mortgage Total Liabilities Net Assets Shareholders' Funds Ordinary Shares of $2 each Retained Earnings (accumulate losses) Total shareholders' Funds Write report that highlights unusual relationships in the figures. Your audit focus is on the year-end figures as at 30 June 2018. - a) What anomalies can you find? -b) What questions would you raise? -c) What balances and transactions will be priority items in your audit