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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
You are the partner in charge of the audit of Granchester Limited., a company listed on the Johannesburg Securities Exchange. The financial year-end of the company is 30 September 20X1 and the directors wish to approve the financial statements for issue on 15 November 20X1.
In finalising the financial statements, the directors wish to create an accrual for audit fees of Cl 200 000, of which C900 000 relates to audit work completed at 30 September 20X1 and the C300 000 relates to work done between 1October 20X1 and 31 October 20X1. All the fees relate to the financial year ended 30 September 20X1.
Required:
Discuss, giving reasons, whether or not you agree with the directors’ treatment of the provision for audit fees.
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