You are the auditor of AAA. On 15 February 2021, you were told that AAA...
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Accounting
You are the auditor of AAA. On 15 February 2021, you were told that AAA has lost a court case and was ordered to pay $20 million in compensation to the plaintiff. The court case started in July 2020 when AAA was involved in a legal dispute. AAA is planning to appeal the decision to a higher court.
Additional information:
Annual balance date: 31 December 2020
Completion of audit fieldwork: 2 February 2021
Signing of audit report: 8 February 2021
Publication of financial statements: 24 March 2021
Required:
State what the auditor will either do or request Management to do. Justify your response. (2 Marks)
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