The Audit of the Multinational Listed Company ABC Ltd Essay - 1

The Audit of the Multinational Listed Company ABC Ltd - Essay Example Abnormal items representing the loss on sale of investments $ 17,050. Details of investments and sale are required to check against the market value that prevailed at the time of sale and reason why they had to be sold at loss should be ascertained. There has been an increase of $ 77,318 in property, plant, and equipment and $ 76,737 in brand names and a decrease of $ 13,595 in investments. The increase in the value of property, plant, and equipment needs to be physically verified with reference to the relative purchase invoices and a comparison with market rates conducted. The increase in brand names also needs to be physically checked with new brand names acquired or it should be ascertained whether increase has been due to the revaluation of the brand names. Policy regarding treatment of brand names in the balance sheet has been separately dealt with. As regards decrease in investments, it should be investigated, the reason for there being no correlation with the loss reported and the decrease. Whether the values reported in the balance sheet represent a cost of acquisition or market value has also to be ascertained. The increase in creditors and borrowings represents an amount of $ 186,041. This is to be ensured against any possible inclusion of proforma purchase invoices without corresponding entry in the value of inventories. Policy regarding payment based on proforma invoices without receiving stocks has also been separately dealt with. The net increase of $ 44,240 in total non-current liabilities should be analyzed. While there is the increase in creditors and borrowings, provisions have reduced. Whether there is under a provision of liabilities to avoid the possible reduction in profits or liabilities have been terminated requiring no further provisions, need to be ascertained.