You are the auditors of Buildmax Inc. for the year ended 31 December 2020. Fieldwork...
60.1K
Verified Solution
Link Copied!
Question
Accounting
You are the auditors of Buildmax Inc. for the year ended 31 December 2020. Fieldwork was completed on 15 January 2021, the audit report is dated 28 February 2021, and the financial report is to be issued on 15 March 2021. On 21 November 2020, Buildmax bought a new building in Fiji, which is recorded at cost in the accounts. On 10 March 2021 you discovered that the building had been destroyed by fire on 18 December 2020. The building was uninsured and the amount was material. Assuming there are no other matters of note for the Buildmax engagement, in relation to the financial report, the required action by management is (select the appropriate number): 1 - No action is required 2 - Adjust the financial statements 3 - Disclose in the financial statements 4 - Disclose in the Director's Report a. 1 O b. 2 O O c. 3 d d. 4
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
