East Africa university

Assignment of audit

Lectured by : Da’ud said

My name said salad omar

No: …………….

QUESTION 1
How long is ‘foreseeable future’ for going concern purposes?

answer

 the foreseeable future to be a period of usually take 12 months from the end of the reporting
period.
QUESTION 2

Sales revenue has fallen rapidly in the first few months after the year end.

Could this be an adjusting event?

Answer

 Yes it is adjusting

Question 3

A written representation is no substitute for other audit evidence ,so auditors will be prepared to sign an
auditor’s report without receiving written representations.

Is this statement true or false?

Answer

 False

Question 4

A flood of the client's were hose accurse on 23/1/20x5 ruining most of the inventory , which is material
to the financial statements.

Is it an adjusting events?

Answer

 Adjusting