Question
PURPOSE OF AN AUDIT The financial statements of Chaos Ltd, a listed European company, show the following amounts on year-end 31 Dec 2015 Revenue
PURPOSE OF AN AUDIT
The financial statements of Chaos Ltd, a listed European company, show the following amounts on year-end 31 Dec 2015
| Revenue | € 120 Mio |
| Profit before taxation | € 25 Mio |
| Net assets | € 460 Mio |
In July 2015 legal proceedings were instigated for a serious breach of health and safety legislation amounting to € 10 Mio. The directors of Chaos Ltd have not included a provision as the payment is only expected after 31 Dec 2018.
The consequence for the audit?
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Modern Advanced Accounting In Canada
Authors: Hilton Murray, Herauf Darrell
7th Edition
1259066487, 978-1259066481
