Course Assurance and Audit Services Ju Ru Co is the auditor of RBD Group Berhad (RBD), a Malaysian public interest entity that is listed on the Australian Stock Exchange (ASX) which extracts, refines and sells refined palm oil and related products The audit of RBD Group of companies for the year ended 30 June 2021 had the following events Date (2021) Event 30 August Notice of Winding up Order and the appointment of a Liquidator was made in the national newspaper of a major customer representing 12 of the trade receivables on the statement of financial position as at 30 June 2021 28 September The financial statements of RBD for the year ending 30 June 2021were approved by directors 29 September Audit work completed and the auditors report signed 3 October Accidental release of toxic chemicals into the nearby river from RBDs palm oil refinery resulting in severe damage to the environment and was hauled by the authorities for non compliance with laws and regulations Management had amended and made adequate disclosure of the event in the financial statements 26 October The 2021 annual report with the audited financial statements for the year ended 30 June 2021 was issued to the members (shareholders) of RBD 29 October A fire at one of RBDs main palm oil refinery plants destroyed the refinery facilities Reconstructing a new palm oil refinery plant will take twelve months, with a consequential loss in palm oil refinery production during this time REQUIRED (a) List the audit procedures that can be used prior to the auditors report being signed to identify events that may require adjustment or disclosure in the financial statements (b) For each of the following three dates 30 August 2021 3 October 2021, and 29 October 2021 (i) State whether the events occurring on those dates are adjusting or non adjusting according to AASB 110 IAS 10 Events After the Reporting Period, giving reasons for your decision (ii) Explain the auditors responsibility and the audit procedures that should be carried out

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 15, 2024

Course: Assurance and Audit Services Ju Ru & Co. is the auditor of RBD Group Berhad (RBD), a Malaysian public-interest entity that is listed on

Course: Assurance and Audit Services

Ju Ru & Co. is the auditor of RBD Group Berhad (RBD), a Malaysian public-interest entity that is listed on the Australian Stock Exchange (ASX) which extracts, refines and sells refined palm oil and related products. The audit of RBD Group of companies for the year ended 30 June 2021 had the following events:

Date (2021)	Event
30 August	Notice of Winding-up Order and the appointment of a Liquidator was made in the national newspaper of a major customer representing 12% of the trade receivables on the statement of financial position as at 30 June 2021.
28 September	The financial statements of RBD for the year ending 30 June 2021were approved by directors.
29 September	Audit work completed and the auditors report signed.
3 October	Accidental release of toxic chemicals into the nearby river from RBDs palm oil refinery resulting in severe damage to the environment and was hauled by the authorities for non-compliance with laws and regulations. Management had amended and made adequate disclosure of the event in the financial statements.
26 October	The 2021 annual report with the audited financial statements for the year ended 30 June 2021 was issued to the members (shareholders) of RBD.
29 October	A fire at one of RBDs main palm oil refinery plants destroyed the refinery facilities. Reconstructing a new palm oil refinery plant will take twelve months, with a consequential loss in palm oil refinery production during this time.

REQUIRED

(a) List the audit procedures that can be used prior to the auditors report being signed to identify events that may require adjustment or disclosure in the financial statements.

(b) For each of the following three dates:

30 August 2021
3 October 2021, and
29 October 2021:

(i) State whether the events occurring on those dates are adjusting or non-adjusting according to AASB 110 / IAS 10 Events After the Reporting Period, giving reasons for your decision.

(ii) Explain the auditors responsibility and the audit procedures that should be carried out.