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You are the auditor of Reliable Logistics Ltd (RLL) for the year ended 30 June 2024. The financial report is due to be signed by
You are the auditor of Reliable Logistics Ltd (RLL) for the year ended 30 June 2024. The financial report is due to be signed by the directors and the audit report signed by the audit partner on 31 July 2024, with the financial report to be issued on 15 August 2024. The following information has come to light since balance date: 1. During July 2024, RRL was approached by Farm Fresh Ltd, a company that produces various dairy products, to transport its products from the factory to supermarkets around Australia. A term of the contract is that RRL must have back-up generators at each of its depots to ensure that products remain refrigerated overnight in the event of any power failure. The cost of the generators will be $75,000. 2. On 18 July 2024, one of RRL's major customers, Pork Products, went into receivership. At 30 June 2024, Pork Products had an accounts receivable balance of $300,000 and the receivers have advised creditors that they are likely to recover only 25 cents in the dollar. 3. On 3 August 2024, one of RRL's trucks was involved in a serious accident when it crashed into a group of shops, causing damages
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