Griffith AFE 3102AFE Your firm has been Approached by a Listed Company

Griffith AFE 3102AFE Your firm has been Approached by a Listed Company in $11 Only (Instant Download)Griffith AFE 3102AFE Your firm has been Approached by a Listed Company

Sample Answer is Given Below

Assignment XLS1015.docx ASSIGNMENT Your firm has been approached by a listed company, POFO Limited, and asked if you will accept appointment as auditors for the year ending 31 December 2015 (it is now late November 2015).

POFO Ltd’s Finance Director provided you with the following statement of financial position and income statement information which included actual figures for years ending 31 December 2012 to 2014, with estimated figures for 2015. POFO Ltd produces gadgets. This was once a fairly profitable industry but both the size and profitability of the industry in Australia have declined significantly in recent years due to advanced technology and replacement products (which POFO Ltd is unable to produce with its existing plant and equipment). Over recent years a number of its competitors and customers have closed down and existing tariffs, quotas and import duties on imported gadgets have been scheduled to be abolished at the beginning of 2015. POFO Ltd’s factory closed in late November, pending the resolution of an industrial dispute (factory workers demanding a 15% wage rise and reduced hours). It is unlikely that work will resume prior to the Christmas shutdown and consequently the estimated figures for 2015 are not, in the opinion of the Finance Director, expected to change.

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