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    Luke Allen 1

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    Neetor Tendekayi
    This document outlines audit procedures to be performed for XYZ Limited for the year ended 31 December 2018 and planning considerations for the audit of 31 December 2019 financial statements. The procedures for 2018 include verifying reports of effluent discharge causing health issues, obtaining legal letters, ensuring a provision was recognized rather than a contingent liability, inspecting policies on litigations, and obtaining management representations. Planning for the 2019 audit includes establishing a review program, verifying records maintained, checking for required government permissions, assessing management competence, and establishing proper classification and disclosure of contingent liabilities and provisions.

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    Luke Allen 1

    Uploaded by

    Neetor Tendekayi
    68 views3 pages
    This document outlines audit procedures to be performed for XYZ Limited for the year ended 31 December 2018 and planning considerations for the audit of 31 December 2019 financial statements. The procedures for 2018 include verifying reports of effluent discharge causing health issues, obtaining legal letters, ensuring a provision was recognized rather than a contingent liability, inspecting policies on litigations, and obtaining management representations. Planning for the 2019 audit includes establishing a review program, verifying records maintained, checking for required government permissions, assessing management competence, and establishing proper classification and disclosure of contingent liabilities and provisions.

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    accounting evaluation

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    This document outlines audit procedures to be performed for XYZ Limited for the year ended 31 December 2018 and planning considerations for the audit of 31 December 2019 financial statements. The procedures for 2018 include verifying reports of effluent discharge causing health issues, obtaining legal letters, ensuring a provision was recognized rather than a contingent liability, inspecting policies on litigations, and obtaining management representations. Planning for the 2019 audit includes establishing a review program, verifying records maintained, checking for required government permissions, assessing management competence, and establishing proper classification and disclosure of contingent liabilities and provisions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    68 views3 pages

    Luke Allen 1

    Uploaded by

    Neetor Tendekayi
    This document outlines audit procedures to be performed for XYZ Limited for the year ended 31 December 2018 and planning considerations for the audit of 31 December 2019 financial statements. The procedures for 2018 include verifying reports of effluent discharge causing health issues, obtaining legal letters, ensuring a provision was recognized rather than a contingent liability, inspecting policies on litigations, and obtaining management representations. Planning for the 2019 audit includes establishing a review program, verifying records maintained, checking for required government permissions, assessing management competence, and establishing proper classification and disclosure of contingent liabilities and provisions.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Name Allen L Masamvu

    Programme HACC 4.2


    Registration number R151163X
    Course Auditing and Investigation II
    Course code AC414
    Lecturer Mr. Rukweza
    Question Case study – XYZ limited
    AUDIT PROCEDURES TO BE PERFORMED FOR THE YEAR ENDED 31 DECEMBER 2018 (XYZ Limited)

    Brief Background of the conditions

    • Reference must be made in relation with International Accounting Standard 10 which


    talks about events after the reporting date.

    • The health and safety environment of XYZ Limited discovered that the effluent
    discharged in the stream could cause skin cancer.

    • Litigation arose later 1 May 2019.

    • Hence this is a modifying occasion in terms of IAS 10 and subsequently the


    methodology to be sketched out underneath are to determine that the occasion is giving
    proof of conditions existing toward the finish of the announcing time frame thinking
    about that the organization found this before year end and the harm was done before year
    end.

    Audit procedures

    • They were talks with the company's lawful counsellors as to get a full thought of
    the possibility of winning the case.

    • Verification of the report from HSE through request from the board and top
    wellbeing authorities of the organization in order to affirm the validness of the
    report.

    • To obtain the attonies letter for the attorneys of XYZ limited to inform the auditor
    of any pending litigations, if any

    • Ensuring a provision has been recognised as opposed to disclosure as a contingent


    liability to meet the requirements of International Accounting Standard 37 that is
    Provisions, Contingent Liabilities and Contingent Assets.

    • Inspect company policies, regulations, procedures and guidelines in dealing with


    pending and ongoing litigations. To ensure XYZ’s management did not override
    any procedures, regulations, policies and guidelines

    • Obtaining written representation from management to confirm the treatment of the


    provision.

    • Inspect the minutes of board meetings. Inspection is to ascertain if the board


    discussed any pending legal issues which are not reported or disclosed in the
    financial statements, if so, reasons behind the non- disclosure
    (b) Description of the planning considerations for the 31 December 2019 year
    end and the audit procedures considered before commencement of the audit
    (XYZ Limited)

    • Establishment of review program that is arranging the review work


    spreading out division of review work among staff and the game plan in
    connection to the review arrangements and techniques through affirmation
    from the board of XYZ Limited.

    • Verification of rundown of books kept up by XYZ Limited that is acquiring


    the statutory or compulsory books, statistical or discretionary books, cost
    records ,budgetary reports to see if XYZ Limited is holding fast to
    International Reporting Standards and restorative reports of influenced
    individuals from the network in order to legitimize the gushing released is to
    be sure causing harm.

    • Verification of Central Government permission because in certain cases a


    company must obtain permission from Central Government for carrying out
    audits, in such cases it must be checked whether permission was granted or
    not.

    • Assessment of XYZ Limited 's management experience and qualifications to


    obtain a full understanding of their competence.

    • To establish whether XYZ correctly classified the contingent liabilities as well


    as the provisions

    • To establish if the respective contingent liabilities and provisions were


    recorded fully in the books of XYZ including disclosures were applicable.
    Inspection of financial statements for the contingent liabilities and provisions
    for completeness in disclosure or recognition in terms of provision.

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