Consider each of the following independent situations which have come to your attention. In each of the following independent and material situations assume that the client is a reporting entity and that a general-purpose financial report has been prepared and audited Event 2: The management of Surf Limited's has refused to disclose a few, director related transactions on the grounds of commercial confidentiality. The financial controller reminds you that no other errors have been found in the financial report and states that the transactions are immaterial and therefore irrelevant to the users of the financial report. Event 4: Upon review of the recent history of their specialised mining equipment Minco Limited changed the service lives for depreciation purposes on this equipment from five years to three years. This change resulted in a material amount of additional depreciation.
Consider each of the following independent situations which have come to your attention. In
each of the following independent and material situations assume that the client is a
reporting entity and that a general-purpose financial report has been prepared and audited
Event 2: The management of Surf Limited's has refused to disclose a few, director related
transactions on the grounds of commercial confidentiality. The financial controller reminds
you that no other errors have been found in the financial report and states that the
transactions are immaterial and therefore irrelevant to the users of the financial report.
Event 4: Upon review of the recent history of their specialised mining equipment Minco
Limited changed the service lives for
to three years. This change resulted in a material amount of additional depreciation.
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