The audit fieldwork of Syafinas Berhad for the financial year ended 30 September 2017, has been ended on 15 December 2017. The financial statements and auditor's report were issued and submitted to Securities Commission on 31 December 2017 The following items of subsequent events are unrelated to each other. 1. On 17 January 2018, you discovered that a major customer of Syafinas Berhad went bankrupt on 3 September 2017, due to gradual declining financial health. The customer has a significant outstanding balance in account receivables as at 30 September 2017 2. On 1 December 2017, you discovered that a major customer of Syafinas Berhad went bankrupt on 23 November 2017, due to gradual declining financial health. The customer has a significant outstanding balance in account receivables as at 30 September 2017. 3. On 17 January 2018, you discovered that a major customer of Syafinas Berhad went bankrupt on 1 January 2018, due to gradual declining financial health. The customer has a significant outstanding balance in account receivables as at 30 September 2017 Required: In each of the situations (1 through 3) above, identify from the following the appropriate action and justify your answers: i. ii. iii. Adjust the 30 September 2017, financial statements, Disclose the information in notes to the accounts in the 30 September 2017, financial statements. Request the client revise and reissue the 30 September 2017, financial statements. The revision should involve an adjustment to the 30 September 2017, financial statements. No action is required. iv. The audit fieldwork of Syafinas Berhad for the financial year ended 30 September 2017, has been ended on 15 December 2017. The financial statements and auditor's report were issued and submitted to Securities Commission on 31 December 2017 The following items of subsequent events are unrelated to each other. 1. On 17 January 2018, you discovered that a major customer of Syafinas Berhad went bankrupt on 3 September 2017, due to gradual declining financial health. The customer has a significant outstanding balance in account receivables as at 30 September 2017 2. On 1 December 2017, you discovered that a major customer of Syafinas Berhad went bankrupt on 23 November 2017, due to gradual declining financial health. The customer has a significant outstanding balance in account receivables as at 30 September 2017. 3. On 17 January 2018, you discovered that a major customer of Syafinas Berhad went bankrupt on 1 January 2018, due to gradual declining financial health. The customer has a significant outstanding balance in account receivables as at 30 September 2017 Required: In each of the situations (1 through 3) above, identify from the following the appropriate action and justify your answers: i. ii. iii. Adjust the 30 September 2017, financial statements, Disclose the information in notes to the accounts in the 30 September 2017, financial statements. Request the client revise and reissue the 30 September 2017, financial statements. The revision should involve an adjustment to the 30 September 2017, financial statements. No action is required. iv
