10.After completing, documenting and handing off the UTB task in Canvas, during the
interim procedures, you become aware of a bank covenant that the entity does hot have the ability to fulfill, for which the failure would impact the entity's ability to continue as a going concern in the foreseeable future. What should you do? ()
A Do nothing at this stage, as this matter shall be adequately discussed and documented at
the Conclusion stage when completing the going concern procedures.
B.Ignore, as the UTB documentation and task has been signed off in Canvas,
C. Update the UTB documentation, and bring this to the immediate attention of the Senior D.Make a note of this in the interim work papers and complete the interim audit procedures within the audit deadline
11.Which of the followings is/are adjusting events?
A. An amount received in respect of an insurance claims that was in the course of
negotiation at the balance sheet date
B.The bankruptcy of a customer subsequent to period end related to an insolvency situation
already existent at period-end
C.A court decision against the company regarding patent infringement D.All of the above
- C. Update the UTB documentation, and bring this to the immediate attention of the Senior.
- A. An amount received in respect of an insurance claims that was in the course of negotiation at the balance sheet date and B. The bankruptcy of a customer subsequent to period end related to an insolvency situation already existent at period-end.
