Question 6
ICAN
•
2025
•
ADVANCED AUDIT AND ASSURANCE
•
mixed
Case Stimulus
Wazobia Nigeria Limited is a manufacturer of corrugated zinc roofs. Due to the economic recession, revenue continued to decline each year for the past three years. You are aware that the company had only N300,000 in cash at the year end.
Additional Information
{
"item": "bank_loan",
"description": "The bank loan was obtained in 2016 when the company started recording losses. The collateral for the loan is a fixed and floating charge on the assets of the company to the tune of the loan balance. The first tranche of repayment of the loan is due in 2019 and the amount repayable is N300 million."
}
{
"item": "financial_statements",
"description": {
"December 2018": {
"Revenue": 48921,
"Operating_expenses": -150680,
"Finance_charge": -7500,
"Loss_before_tax": -109259,
"Total_assets": 600500,
"Long_term_liabilities_bank_loan": 1400000,
"Short_term_liabilities_trade_payables": 280000
},
"December 2017": {
"Revenue": 60956,
"Operating_expenses": -158677,
"Finance_charge": -5000,
"Loss_before_tax": -102721,
"Total_assets": 645600,
"Long_term_liabilities_bank_loan": 300000,
"Short_term_liabilities_trade_payables": 80000
}
}
}
{
"item": "disclosed_notes",
"description": {
"Undrawn_borrowing_facilities": 3100000,
"Contingent_liability": 4350000
}
}
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About This Question
This is
Ican
2025
Advanced Audit And Assurance
Question 6.
It is one of the
mixed
questions from the
2025
Ican
Advanced Audit And Assurance
examination.