item include which is 5 yrs back removed

AS 152 views 1 replies

manish kumar

66 Points Joined May 2016

inventories of a car manufacturing co. include value of item, reqrd for manufacturing of model which was removed from production line 5years back at cost what shoul be auditor react on dis situation

Replies (1)

Dear Manish,
Thanks for the query,
Normally there is an agreement with sales partners and service providers to provide with all the components of a discontinuing model for upto a certain pd. usually of 10 years after its production is stopped.

Please put some light on the above mentioned point with ref. to the auditee company.
We will discuss issue further.

Thanks
Abhimanyu