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QUESTION 4 (10 MARKS)
You are the auditor of Southern Ltd a large industrial company and you are preparing to carry out the subsequent event procedures for the 31 march 2017 year – end. The following pertains to the company:
1. The company is very active – a number of major contracts have been signed recently
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2. A court case in which the company is involved is progressing well
3. 4. The company has embarked upon major plant mechanization to cut down on the use of labour
5. The company operates strict financial and budgetary controls
6. The directors hold meeting monthly.
YOU ARE REQUIRED to state the procedures you will conduct to identify subsequent events for the 31 March 2017 year – end. Deal only with those procedures which relate directly to the information given in the question.