Use the Information in the Following Paragraphs to Answer Question

question 1

Essay

Use the information in the following paragraphs to answer question
You are the auditor of Whizzipop plc a manufacturer of soft drinks. The draft consolidated
financial statements for the year ended 30 September 2X18 show revenue of $125 million (2X17 - $114 million), profit before taxation of $12.4 million (2X17 - $10.9 million) and total assets of $110 million (2X17 - $93 million).
It has several subsidiaries, some of which are audited by firms other than yours. The financial statements of one such subsidiary company, Twizzle, for the year ended 30 September 2X18, are audited by another firm. Profit before taxation of $0.4 million and total assets of $34.1 million have been included in the draft consolidated financial statements of Whizzipop. The notes to Twizzle's financial statements as at 30 September 2X18 disclose a contingent liability for a pending legal matter estimated at $0.2 million. In November 2X18, the courts found Twizzle to be liable for costs and damages amounting to $1.1 million. However, Twizzle's directors have refused to make a provision, for any amount, as they have lodged an appeal against the judgement.
-What evidence would you expect to see in respect of this liability?

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Definitions:

Singlet

A term in spectroscopy describing a state with all electron spins paired, resulting in no net electron spin.

NMR Data

Information derived from nuclear magnetic resonance spectroscopy, providing insights into the molecular structure, dynamics, reaction state, and chemical environment of molecules.

Doublet

A pattern, especially in spectroscopy, where a signal is split into two components with a small separation, indicating the interaction between nuclear spins.

Multiplet

A pattern in NMR spectroscopy composed of closely spaced spectral lines, indicating the presence of coupling between nuclear spins.