Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how would you go about answering number 1 ? Clothes-For-All (Pty) Lid is a company that sells clothing with a financial year end of December.

how would you go about answering number 1 ?

image text in transcribed
Clothes-For-All (Pty) Lid is a company that sells clothing with a financial year end of December. The entity anticipates to increase revenue by 10% in the 2019 financial year from R50,000,000 in the 2018 financial year to R55,000,000. The total number of employees on 31 December 2018 was 65. During 2018, 5 employees resigned and 10 employees were hired. The company's shareholder is as follows: . 36% of the shares are owned by Mrs PEP 42% of the shares are owned by Mrs Sneakers 10% of the shares are owned by Mr Price (Pty) Ltd . 2% of the shares are owned by Socks (Pty) Ltd Mr Price (Pty) Ltd and Socks (Pty) Ltd each have 5 and 3 shareholders, respectively, all of whom are natural persons. Below are the liabilities of the entity: Description Amount Trade payables (to non-related companies) at the beginning of the |R3,000,000 2018 financial year Trade payables (to non-related companies) at the end of the 2018 |R4,000,000 financial year Loan owing to Mr Cavella (Chief Executive Officer of Clothes-For- R2,000,000 All (Pty) Ltd) Loan owing to Standard Bank R1,000,000 Loan owing to Mrs Sneakers R5,000,000 The financial statements were compiled by Book-Keep-It (Pty) Ltd. This company is owned by the former Chief Financial Officer of Clothes-For-Me (Pty) Ltd who resigned in the 2013 financial year to start his company. REQUIRED: 1. You are required to calculate the public interest score for Clothes-For-Me (Pty) Ltd at 31 December 2018. (12) 2. Based on the public interest score calculated above, identify what type of assurance is required for this entity and justify your answer (2)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Susan S. Hamlen

3rd Edition

1618531514, 978-1618531513

More Books

Students also viewed these Accounting questions

Question

2. Information that comes most readily to mind (availability).

Answered: 1 week ago