QUESTION
Sotobe Inc. (Sotobe) was incorporated in May 2014 by three UNIZULU Alumni who
...
![subject](/tpl/images/cats/ekonomika.png)
QUESTION
Sotobe Inc. (Sotobe) was incorporated in May 2014 by three UNIZULU Alumni who
qualified as Chartered Accountants in 2013 and they are also registered with IRBA.
The main purpose of Sotobe is to provide the auditing services to public and private
companies. The staff compliment is 16. Sotobe has a small division that provides
consulting service with regard to financial accounting and tax. The reporting date for
Sotobe is 30 April.
Extract of the Pre- Adjustment Trial Balance as at 30 April 2021
R
Audit Fees 25 000 000
Consulting Fees 5 000 000
Salaries 10 000 000
Rent 1 000 000
A tender for the Audit Service was issued and advertised on the Sunday Times by
MKO (Pty) Ltd. Sotobe completed the tender documents and submitted within the
deadline. The appointment of Auditors had to be approved by the Audit Committee of
MKO (Pty) Ltd. Two names of the potential Auditors were submitted to the Audit
Committee meeting that was held on the 25 September 2020 and Sotobe was
approved. The Audit Committee of MKO (Pty) Ltd also approved that Sotobe may
provide a consulting service with a total value of not more than R250 000 per annum.
The audit fees must be paid after the audit service has been provided. The audit
service is expected to cost R1.1m.
On 26 September 2020, MKO (Pty) Ltd requested Sotobe consulting service division
to review its tax calculation before making the first provisional payment to SARS, the
agreed consulting fee was R90 000, payable within 30 days. The reporting date for
MKO (Pty) Ltd is 31 March. The Audit is planned to take place in May 2021 and June
2021, respectively. Sotobe audit team attended the MKO (Pty) Ltd Audit Committee
meeting that was held on the 27 April 2021 to present the audit plan. The budgeted
audit fee for attending the Audit Committee meeting is R20 000 per meeting and this
is included in the expected audit fees of R1.1m stated above.
The approval for the consulting service by the Audit Committee for Sotobe is only
required because Sotobe will be providing the audit service, otherwise, MKO (Pty)
Ltd’s Executive Management can follow the normal procurement (buying) process to
get the consulting service from any qualifying service provider.
![ansver](/tpl/images/cats/User.png)
Answers: 1
![](/tpl/images/ask_question.png)
![](/tpl/images/ask_question_mob.png)
Other questions on the subject: Business
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 04:00, bangchan
Burberry is pursuing a focused differentiation strategy aimed at high-end luxury customers. however, the company is also employing a segmentation strategy to separate customers within that focus. the strategy offers items at an entry-level price point for customers who desire to be like celebrities such as sarah jessica parker as well as couture items for those richest and celebrity customers. what strategy is burberry pursuing?
Answers: 3
![image](/tpl/images/cats/ekonomika.png)
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 11:50, ayoismeisalex
Select the correct answer. ramon applied to the state university in the city where he lives, but he was denied admission. what should he do now? a. change his mind about graduating and drop out of high school so he can start working right away. b. decide not to go to college, because he didn’t have a backup plan. c. stay positive and write a mean letter to let the college know that they made a bad decision. d. learn from this opportunity, reevaluate his options, and apply to his second and third choices.
Answers: 2
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 16:40, adreyan3479
Job 456 was recently completed. the following data have been recorded on its job cost sheet: direct materials $ 2,418 direct labor-hours 74 labor-hours direct labor wage rate $ 13 per labor-hour machine-hours 137 machine-hours the corporation applies manufacturing overhead on the basis of machine-hours. the predetermined overhead rate is $14 per machine-hour. the total cost that would be recorded on the job cost sheet for job 456 would be: multiple choice $3,380 $5,298 $6,138 $2,622
Answers: 1
You know the right answer?
Questions in other subjects:
![Konu](/tpl/images/cats/fizika.png)
Physics, 27.03.2020 18:50
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 27.03.2020 18:50
![Konu](/tpl/images/cats/ekonomika.png)
![Konu](/tpl/images/cats/fizika.png)
![Konu](/tpl/images/cats/istoriya.png)
History, 27.03.2020 18:50
![Konu](/tpl/images/cats/mkx.png)
![Konu](/tpl/images/cats/en.png)
English, 27.03.2020 18:50
![Konu](/tpl/images/cats/mat.png)
Mathematics, 27.03.2020 18:50
![Konu](/tpl/images/cats/mat.png)
Mathematics, 27.03.2020 18:50