Key note from review of director meeting minutes: The chairman observed that in recent months there has been in an increase in customers returning goods under the warranty provided. He observed that the task of determining the appropriate warranty liability at 30 June 2019 is likely to be more difficult and a material balance. Explain what audit significance this matter would have and explain two actions they should take:

Key note from review of director meeting minutes: The chairman observed that in recent months there has been in an increase in customers returning goods under the warranty provided. He observed that the task of determining the appropriate warranty liability at 30 June 2019 is likely to be more difficult and a material balance. Explain what audit significance this matter would have and explain two actions they should take:

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 37RQSC

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