Blue Caffee

https://rpubs.com/staszkiewicz/Ch5_EN_BlueCaffe

BlueCaffee  (SAD)

Małgosia prepared the following summary of unsealed errors and mistakes identified during the audit of BlueCaffee Sp. z o.o.

 

Specification	B/S	P&L
Dt	Ct	Dt
Net equity
Fixed assets	70
Investments		70
Obligations	30
Revenue
Undived profit	50
Provision for pension
payments		50
Reserve opening balance
sheet
Other operating
expenses
Provision for pension
payments		30
Cash	60
Other income
Inventory difference at
checkout

                                                                                                          30 -90 = 60 >> PM 30

It then prepared a reconciliation of the net capital from the turnover adopted for the survey and the final one on the basis of which the reports were compiled.

 

Net capital according  prelimary trial blance	700
Reserve for severance
pay	\(55\)
Post accruals	\(40\)
Other minor	10
Net capital according
to final trial balnce	615

 

BlueCaffee’s basic parameters  are shown in the table below.

 

Pre-tax profit (loss)	(150)
Revenue	301
Total assets	2150
Net capital according
to final trial balance	615

 

Command

A. Calculate the materiality.

(10 points)

B. Prepare the agenda for a meeting with the board on unseated differences.

 (5 points)

C. Recommend an audit opinion on the basis that the board rejects all errors found.

(10 points)

Source: Staszkiewicz, P. (2021), Audit. Zbiór Zadań Do Rewizji Finansowej, I., PWN, Warszwa.