BUACC5935Final Assessment_Sem 12020 - Word Review View Help Tell me what you want to do 21 SE I l Book Title Emphasis Heading 2 Paragraph Question 3 (6 + 7 + 6 = 19 marks) Howard Ltd is a manufacturing company that sells Gym equipment the audit of Howard Ltd for the year ended 30 June 20x0, the auditor lists the following items considered material for review by the engagement manager. 1. A $26,000 sale on 14 July 20X0 for Gym equipment was included in the inventory at a cost of $35,000 2. Bonds were issued on 16 August 20X0 in the amount of $2,000,000 Page 7 of 14 BUACC5935 Auditing and Assurance Services Semester 1 2020 3. Machine was purchased on 31 July 20X0 for the amount of $150.000 4. A major customer filed for bankruptcy on 15 June 20x0. 5. A legal action in the amount of $150 000 was settled on 6 August 20X0 and is listed as a contingent liability on the financial statements 6. A legal action was filed against Howard Ltd for an injury to a customer's employee using a tool sold to them by Howard Ltd 7 Howard has had discussions with a larger tool company for possible merger or sale BUACC5935Final Assessment_Sem 12020 - Word Review View Help Tell me what you want to do 21 SE I l Book Title Emphasis Heading 2 Paragraph Question 3 (6 + 7 + 6 = 19 marks) Howard Ltd is a manufacturing company that sells Gym equipment the audit of Howard Ltd for the year ended 30 June 20x0, the auditor lists the following items considered material for review by the engagement manager. 1. A $26,000 sale on 14 July 20X0 for Gym equipment was included in the inventory at a cost of $35,000 2. Bonds were issued on 16 August 20X0 in the amount of $2,000,000 Page 7 of 14 BUACC5935 Auditing and Assurance Services Semester 1 2020 3. Machine was purchased on 31 July 20X0 for the amount of $150.000 4. A major customer filed for bankruptcy on 15 June 20x0. 5. A legal action in the amount of $150 000 was settled on 6 August 20X0 and is listed as a contingent liability on the financial statements 6. A legal action was filed against Howard Ltd for an injury to a customer's employee using a tool sold to them by Howard Ltd 7 Howard has had discussions with a larger tool company for possible merger or sale