X + X & Auditing & Assurance Services (1 X ) New Tab ini.adelaide.edu.au/courses/79949/quizzes/143182/take Coast & Stone Lid contracts with governments to carry out a variety of infrastructure projects including water treatment and desalination plants and other drainage works. It also acts as a contractor to maintain a range of government infrastructure assets. The contracts that it has with its government customers have very strict turnaround times to ensure that, in the event of problems, water services to the public are quickly brought back on-line. You have completed your audit of Coast & Stone Lid and the following material events occurred: 1. Coast & Stone Led has a large manufacturing centre in Melbourne which provides prefabricated concrete for the company's infrastructure projects. The company policy is to include factories in the balance sheet at market value less accumulated depreciation. The Melbourne factory is included in the balance sheet based on a valuation carried out five years ago. The company has not engaged a valuer to revalue the property because the directors believe that market values have remained fairly level over the last five years, so the existing carrying value is not materially different from current value. 2. During the year, Coast & Stone Lid completed a contract to provide drains for a private construction company that was building 500 houses in a new suburb of Brisbane. Shortly before the year end, a downpour of rain saw the drainage system fail causing damage to the houses being built. The construction company is suing Coast & Stone Lid for the costs of rectifying the damage. Coast & Stone Ltd have not provided for any possible payout because they expect their losses to be covered by a claim against one of their sub-contractors that supplied the faulty part that caused the failure. Required Discuss each of the above issues, state what effect each would have on the audit opinion and give reasons. Il auto.proctoru.com is sharing your screen. Stop sharing Hide O Search w O AKAI