Number 2 please someone help me !!
We Love Waste Inc. (WLW) is a large, diversified Canadian company with several subsidiaries operating mainly in the waste management and disposal industry. WLW was incorporated in 1980 and has grown to become one of the top four waste management firms in Canada. The business was started by the Love family, but currently no family members are actively involved in the management of the company. Family members, family trusts, and a limited number of friends own the common shares. In 2019, the Love family decided that they would begin the process of selling the company over the next two or three years. In preparation for the sale, the company has engaged your firm, Passey and Partners, to audit the company's financial statements. WLW has an August 31 year-end. It is now September 22, 2021, and your firm is partway through the audit of WLW for the year-ended August 31, 2021. The materiality for the engagement has been set at $6.5 million. You are reviewing the files that your junior auditors have prepared, and you note the following events: 1. On June 23, 2021, WLW received a wire transfer of 20 million Guinean francs (GNF) to its general Canadian dollar bank account in payment of an outstanding customer invoice. WLW's bank converted the funds to $10 milion Canadian, incorrectly assuming that the transfer was in the currency of Papua New Guinea, the kina (PGK). On that day, 8,000 Guinean francs bought one Canadian dollar. WLW has not in-formed the bank of the error and has taken the difference into income. 2. During 2021, WLW lost a decision in the Federal Court of Appeal in a lawsuit brought by Garbage Globe Ltd. for patent infringement. In an unusual award, the court ordered WLW to pay $18 million for shares of Garbage Globe Ltd., a private company, which had been in some financial difficulty. WLW has decided not to appeal the decision to the Supreme Court, and the company bought the shares in Garbage Globe Ltd. before year-end. We Love Waste Inc. (WLW) is a large, diversified Canadian company with several subsidiaries operating mainly in the waste management and disposal industry. WLW was incorporated in 1980 and has grown to become one of the top four waste management firms in Canada. The business was started by the Love family, but currently no family members are actively involved in the management of the company. Family members, family trusts, and a limited number of friends own the common shares. In 2019, the Love family decided that they would begin the process of selling the company over the next two or three years. In preparation for the sale, the company has engaged your firm, Passey and Partners, to audit the company's financial statements. WLW has an August 31 year-end. It is now September 22, 2021, and your firm is partway through the audit of WLW for the year-ended August 31, 2021. The materiality for the engagement has been set at $6.5 million. You are reviewing the files that your junior auditors have prepared, and you note the following events: 1. On June 23, 2021, WLW received a wire transfer of 20 million Guinean francs (GNF) to its general Canadian dollar bank account in payment of an outstanding customer invoice. WLW's bank converted the funds to $10 milion Canadian, incorrectly assuming that the transfer was in the currency of Papua New Guinea, the kina (PGK). On that day, 8,000 Guinean francs bought one Canadian dollar. WLW has not in-formed the bank of the error and has taken the difference into income. 2. During 2021, WLW lost a decision in the Federal Court of Appeal in a lawsuit brought by Garbage Globe Ltd. for patent infringement. In an unusual award, the court ordered WLW to pay $18 million for shares of Garbage Globe Ltd., a private company, which had been in some financial difficulty. WLW has decided not to appeal the decision to the Supreme Court, and the company bought the shares in Garbage Globe Ltd. before year-end
