WLU Question will save this response. Question 13 Consider each of the following independent and material situations. In each case: the balance date is 30 June 20x9 the financial report and audit report were signed on 12 August 20X9 the financial report and audit report were mailed to the members on 20 August 20X9 a. The Research and Development (R&D) division of your client Neptune Limited had developed a new type of photocopy Limited capitalised the development cost relating to the new photocopy paper in its 30 June financial reports. However, June b. Your client, Outback Mining Limited, owns a mineral exploration licence in Central Australia, At 30 June this licence was Limited received notice that a claim was being lodged under the Native Titles Act. If the claim is successful the exploratio c. Your client. Gem Limited, made an out of court settlement on 1 August 20x9 of $300,000. The settlement related to a liti d. You are the auditor of Turbo Limited, a professional services client. On 15 August 20X9. Turbo Limited settled and paid previously recorded a liability for the claim e. On 22 August 20X9. you discover that a debtor of your dient Galaxy Limited, was placed in liquidation on 16 August. The preliminary information, the likely payout to client is zero. Required: 1. Describe your obligations as the auditor to each of the above subsequent events (5 x 1 marka 5 Marks) l. For each of the events described above, select the appropriate action from the list below and justify your response: (5 x 2 a. Adjust the 30 June 20x9 financial report b. Disclose the information in a note to the 30 June 20x9 financial report c. Request the client recall the 30 June 20x9 financial report for revision, d. No action is required 10. What additional information would you obtain in relation to each of the events described above? (5 X 2 Marks 10 Marks) Total: 25 Marks 13 14 Question 13 of 14 25 points SA neach case: 2009 bers on 20 August 20X9 Neptune Limited had developed a new type of photocopy paper, and the directors believed that the new photocopy paper would double their sales volume. Furthermore, the photocopy paper in its 30 june financial reports. However, on 8 July 20x9 the granting of the application for a patent is rejected becauses competitor fadregistered a similar patentin cion licence in Central Australia. At 30 June this licence was valued by an independent expert at 550.000.000. The valuation is relected the financual report. Ons Outback Mining the Native Titles Act. If the claim is successful the exploration licence will be worthless m 1 August 20x9 of 5300.000. The settlement related to a Ingation case dating back 4 years. A provision of $150.000 was recorded in the 30 June 2009 financial report client. On 15 August 20x9, Turbo Limited settled and paid personal injury aim to a former employee as a result of the accident that occurred in March 20X9. The company had not Galaxy Limited, was placed in liquidation on 16 August. The debtorowed 5600.000 as at 30 June a specific provision of 300.000 of the amount was made at the date on wery uve subsequent events (5x1 mark=5 Marks) riate action from the list below and justify your response: x2 Marks - TO Maris) axo financial report report for revision to each of the events described above? 5 x 2 Marks - 30 Marks) Seashorn Curtinishing your en A Moving to another question will save this response. uestion 13 Consider each of the following independent and material situations. In each case: 0 the balance date is 30 June 20X9 the financial report and audit report were signed on 12 August 20X9 the financial report and audit report were mailed to the members on 20 Augusti a. The Research and Development (R&D) division of your client Neptune Limited ha Limited capitalised the development cost relating to the new photocopy paper in June, b. Your client Outback Mining Limited, owns a mineral exploration licence in Central Limited received notice that a claim was being lodged under the Native Titles Act. c. Your client. Gem Limited, made an out of court settlement on 1 August 2009 of $30 d. You are the auditor of Turbo Limited a professional services client. On 15 August 2 previously recorded a liability for the claim. e. On 22 August 20X9. you discover that a debtor of your client, Galaxy Limited, was pla preliminary information, the likely payout to client is zero. Required: 1. Describe your obligations as the auditor to each of the above subsequent events ( 5 x H. For each of the events described above, select the appropriate action from the list bel a. Adjust the 30 June 20x9 financial report. b. Disclose the information in a note to the 30 June 20x9 financial report C. Request the client recall the 30 June 20x9 financial report for revision d. No action is required If. What additional information would you obtain in relation to each of the events describ Total: 25 Marks material situations. In each case signed on 12 August 20X9 mailed to the members on 20 August 20x9 ision of your client Neptune Limited had developed a new type of photocopy paper and the direct relating to the new photocopy paper in its 30 june financial reports. However, on 8 July 2009 the gr as a mineral exploration licence in Central Australia. At 30 June this licence was valued by an indepen being lodged under the Native Titles Act. If the claim is successful the exploration licence will be worn of court settlement on 1 August 20x9 of $300,000. The settlement related to a litigation case dating ba professional services client. On 15 August 20x9. Turbo Limited settled and paid personal Injury claim to Bim. debtor of your client. Galaxy Limited, was placed in liquidation on 16 August. The debtor owed $600.00 out to client is zero. or to each of the above subsequent events (5 x 1 mark - 5 Marks) e, select the appropriate action from the list below and justify your response: (5 x 2 Marks = 10 Marks) al report te to the 30 June 20x9 financial report June 20x9 financial report for revision. Hou obtain in relation to each of the events described above? (5 x 2 Marks = 10 Marks) Question 130 25 points 120X9 had developed a new type of photocopy paper, and the directors believed that the new photocopy paper would double their sales volume. Furthermore, Neptune in its 30 June financial reports. However, on July 20x9 the granting of the application for a patent is rejected because a competitor had registered a similar patent entral Australia. At 30 june this licence was valued by an independent expert at 550.000.000. This valuation is reflected in the financial report. On 8 August Outback Mir Act. If the claim is successful the exploration licence will be worthless. of $300,000. The settlement related to a litigation case dating back 4 years. A provision of $150,000 was recorded in the 30 June 20x9 financial report gust 20X9. Turbo Limited settied and paid personal injury claim to a former employee as a result of the accident that occurred in March 20x9. The company had not was placed in liquidation on 16 August. The debtor owed $600,000 as at 30 june: a specific provision of $300.000 of this amount was made at this date. On very events (5x1 mark5 Maris) the list below and justify your response: (5 * 2 Marks - 10 Marks) on events described above? (5 x 2 Marks - 10 Marks) WLU Question will save this response. Question 13 Consider each of the following independent and material situations. In each case: the balance date is 30 June 20x9 the financial report and audit report were signed on 12 August 20X9 the financial report and audit report were mailed to the members on 20 August 20X9 a. The Research and Development (R&D) division of your client Neptune Limited had developed a new type of photocopy Limited capitalised the development cost relating to the new photocopy paper in its 30 June financial reports. However, June b. Your client, Outback Mining Limited, owns a mineral exploration licence in Central Australia, At 30 June this licence was Limited received notice that a claim was being lodged under the Native Titles Act. If the claim is successful the exploratio c. Your client. Gem Limited, made an out of court settlement on 1 August 20x9 of $300,000. The settlement related to a liti d. You are the auditor of Turbo Limited, a professional services client. On 15 August 20X9. Turbo Limited settled and paid previously recorded a liability for the claim e. On 22 August 20X9. you discover that a debtor of your dient Galaxy Limited, was placed in liquidation on 16 August. The preliminary information, the likely payout to client is zero. Required: 1. Describe your obligations as the auditor to each of the above subsequent events (5 x 1 marka 5 Marks) l. For each of the events described above, select the appropriate action from the list below and justify your response: (5 x 2 a. Adjust the 30 June 20x9 financial report b. Disclose the information in a note to the 30 June 20x9 financial report c. Request the client recall the 30 June 20x9 financial report for revision, d. No action is required 10. What additional information would you obtain in relation to each of the events described above? (5 X 2 Marks 10 Marks) Total: 25 Marks 13 14 Question 13 of 14 25 points SA neach case: 2009 bers on 20 August 20X9 Neptune Limited had developed a new type of photocopy paper, and the directors believed that the new photocopy paper would double their sales volume. Furthermore, the photocopy paper in its 30 june financial reports. However, on 8 July 20x9 the granting of the application for a patent is rejected becauses competitor fadregistered a similar patentin cion licence in Central Australia. At 30 June this licence was valued by an independent expert at 550.000.000. The valuation is relected the financual report. Ons Outback Mining the Native Titles Act. If the claim is successful the exploration licence will be worthless m 1 August 20x9 of 5300.000. The settlement related to a Ingation case dating back 4 years. A provision of $150.000 was recorded in the 30 June 2009 financial report client. On 15 August 20x9, Turbo Limited settled and paid personal injury aim to a former employee as a result of the accident that occurred in March 20X9. The company had not Galaxy Limited, was placed in liquidation on 16 August. The debtorowed 5600.000 as at 30 June a specific provision of 300.000 of the amount was made at the date on wery uve subsequent events (5x1 mark=5 Marks) riate action from the list below and justify your response: x2 Marks - TO Maris) axo financial report report for revision to each of the events described above? 5 x 2 Marks - 30 Marks) Seashorn Curtinishing your en A Moving to another question will save this response. uestion 13 Consider each of the following independent and material situations. In each case: 0 the balance date is 30 June 20X9 the financial report and audit report were signed on 12 August 20X9 the financial report and audit report were mailed to the members on 20 Augusti a. The Research and Development (R&D) division of your client Neptune Limited ha Limited capitalised the development cost relating to the new photocopy paper in June, b. Your client Outback Mining Limited, owns a mineral exploration licence in Central Limited received notice that a claim was being lodged under the Native Titles Act. c. Your client. Gem Limited, made an out of court settlement on 1 August 2009 of $30 d. You are the auditor of Turbo Limited a professional services client. On 15 August 2 previously recorded a liability for the claim. e. On 22 August 20X9. you discover that a debtor of your client, Galaxy Limited, was pla preliminary information, the likely payout to client is zero. Required: 1. Describe your obligations as the auditor to each of the above subsequent events ( 5 x H. For each of the events described above, select the appropriate action from the list bel a. Adjust the 30 June 20x9 financial report. b. Disclose the information in a note to the 30 June 20x9 financial report C. Request the client recall the 30 June 20x9 financial report for revision d. No action is required If. What additional information would you obtain in relation to each of the events describ Total: 25 Marks material situations. In each case signed on 12 August 20X9 mailed to the members on 20 August 20x9 ision of your client Neptune Limited had developed a new type of photocopy paper and the direct relating to the new photocopy paper in its 30 june financial reports. However, on 8 July 2009 the gr as a mineral exploration licence in Central Australia. At 30 June this licence was valued by an indepen being lodged under the Native Titles Act. If the claim is successful the exploration licence will be worn of court settlement on 1 August 20x9 of $300,000. The settlement related to a litigation case dating ba professional services client. On 15 August 20x9. Turbo Limited settled and paid personal Injury claim to Bim. debtor of your client. Galaxy Limited, was placed in liquidation on 16 August. The debtor owed $600.00 out to client is zero. or to each of the above subsequent events (5 x 1 mark - 5 Marks) e, select the appropriate action from the list below and justify your response: (5 x 2 Marks = 10 Marks) al report te to the 30 June 20x9 financial report June 20x9 financial report for revision. Hou obtain in relation to each of the events described above? (5 x 2 Marks = 10 Marks) Question 130 25 points 120X9 had developed a new type of photocopy paper, and the directors believed that the new photocopy paper would double their sales volume. Furthermore, Neptune in its 30 June financial reports. However, on July 20x9 the granting of the application for a patent is rejected because a competitor had registered a similar patent entral Australia. At 30 june this licence was valued by an independent expert at 550.000.000. This valuation is reflected in the financial report. On 8 August Outback Mir Act. If the claim is successful the exploration licence will be worthless. of $300,000. The settlement related to a litigation case dating back 4 years. A provision of $150,000 was recorded in the 30 June 20x9 financial report gust 20X9. Turbo Limited settied and paid personal injury claim to a former employee as a result of the accident that occurred in March 20x9. The company had not was placed in liquidation on 16 August. The debtor owed $600,000 as at 30 june: a specific provision of $300.000 of this amount was made at this date. On very events (5x1 mark5 Maris) the list below and justify your response: (5 * 2 Marks - 10 Marks) on events described above? (5 x 2 Marks - 10 Marks)