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ou are an audit manager at Blanck & Co and are approaching the end of the audit of Simson Co, which a large listed retailer.

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ou are an audit manager at Blanck & Co and are approaching the end of the audit of Simson Co, which a large listed retailer. The draft financial statements currently show a profit before tax of $6.5m and evenue of $66m for the financial year ended 30 June 206. You have been informed that the finance lirector left Simson Co on 31 May 206. Is part of the subsequent events audit procedures, you reviewed post year-end board meeting minutes and discovered that a legal case for unfair dismissal has been brought against Simson Co by the finance director. During a discussion with the Human Resources (HR) director of Simson Co, you established that he company received notice of the proposed legal claim on 10 July 206. The HR director told you that Simson Co's lawyers believe that the finance director's claim is likely to be successful but estimate that $700,000 is the maximum amount of compensation which would be paid. However, management does not intend to make any adjustments or disclosures in the financial statements. 11) Blanck \& Co has a responsibility to perform procedures to obtain sufficient, appropriate evidence that subsequent events are appropriately reflected in the financial statements of Simson Co. The Management approves financial statement on 15 July 206. The audit report was issued on 20 July 206. The year end is 30 June 206. Indicate, which period is considered as events after the reporting period: A. 15 July 20620 July 206 B. 30 June 206 - 15 July 206 C. 30 June 206=20 July 206 D. None of above 12) If, after the financial statements have been issued, Blanck & Co becomes aware of a fact which may have caused its report to be amended, the firm should consider several possible actions. Which TWO of the following are not appropriate actions for Blanck \& Co to take? A. Discuss the matter with management and, where appropriate, those charged with governar B. Obtain a written representation from management C. Consider whether the firm should resign from the engagement D. Enquire how management intends to address the matter in the financial statements wheri

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