Your Client's Balance Sheet Date Is 30 June 2012, the Audit

question 55

Essay

Your client's balance sheet date is 30 June 2012, the audit report date is 31 August 2012, and the financial statements are issued 15 September 2012.A customer with a material outstanding accounts receivable balance declared bankruptcy on 5 July 2012 due to a warehouse fire that occurred 27 June 2012.State whether this situation warrants an adjustment to the financial statements, requires disclosure in footnotes but not an adjustment, or needs no action.Justify your answer.

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Definitions:

IT Managers

Professionals responsible for overseeing and managing the information technology (IT) needs and infrastructure within an organization.

Influencers

Individuals who have the power to affect purchasing decisions of others because of their authority, knowledge, position, or relationship with their audience.

Influencers

Individuals who have the power to affect the purchase decisions of others because of their authority, knowledge, position, or relationship with their audience.

Specifications

Detailed descriptions of the design, materials, and requirements for a project or product.