Consider each of the following situations separately. Assume that all of the

events are highly material.

In all situations:

the balance date for the companies is 30 June 2010

the field work for the companies was completed 20 August 2010

the financial statements and audit report were signed on 3 September

2010

the financial statements and audit report were mailed to the members

on 10 September 2010.

a) A draft investigative report commissioned by a government inquiry was

leaked to the media on 25 August 2010. The report has questioned the

continued need for a segment of your clients business. Accordingly, there

is significant uncertainty regarding the future necessity for one of the

services offered by the company and its industry colleagues. There has

been significant media attention and speculation on this issue.

b) On 20 October 2010, you discover that a debtor of NACD Limited at 30

June 2010 had gone bankrupt on 1 October 2010. The debt had appeared

collectible at 30 June 2010 and 3 September 2010.

c) On 7 September 2010, you discover an uninsured legal action against the

client that had originated in January 2007.

d) On 20 August 2010, you discover that a debtor had gone bankrupt on 3

August 2010. The last sale took place on 1 July 2010. The cause of the

bankruptcy was a major uninsured fire at one of the debtors premises.

Required: