Question $2$:

You are auditing Lifetime Tours Ltd for the year ended $30$ June $2018.$ The financial report will be approved and signed by the directors on $30$ July $2018,$ with the auditor$$s report signed on the same date. The audited financial report will be issued on $12$ August $2018.$

After $30$ June $2018$ the following information came to light:

$1.$ On $1$ July $2018,$ the government issued a travel warning to a number of African countries. Forty$-$five per cent of Lifetime Tours$$ business comes from running adventure tours in the countries mentioned in the warning.

$2.$ On $15$ July $2018,$ one of Lifetime Tours$$ clients, Jungle Adventures, went into liquidation. Jungle Adventures purchased travel packages in bulk. A letter from the liquidator dated $30$ July $2018$ indicated that creditors were likely to receive $$$$0\mathrm{.}10$ in the dollar$.$ At $30$ June $2018,$ Jungle Adventures owed Lifetime Tours $$1245285$ and Lifetime Tours had provided for $10$ per cent of the amount owed as a doubtful debt.

$3.$ On $9$ August $2018,$ a bus transporting a Lifetime Tours tour group in New Zealand crashed. Some passengers on board, including the Lifetime Tours guide, and the driver had minor injuries. Lifetime Tours is concerned about the negative publicity relating to the crash.

REQUIRED

For each situation above, assess the type of subsequent event and how each would impact Lifetime Tours$$ financial report for the year ended $30$ June $2018,$ if at all