Healesville Sanctuary is a family-owned and operated wildlife park located in Melbourne. Healesville Sanctuary has more than 150 animal species, some of which are loaned from overseas animal parks. Healesville Sanctuary has two divisions for selling merchandise: a retail operation that sells food, beverages, shirts, souvenirs and other novelties to visitors within the park, and a wholesale operation that sells toys to department stores. The following management figures are relevant for the year ended 30 June 2020: $ Total assets 69 120 000 Total current assets 34 560 000 Inventories 28 800 000 Net assets 51 840 000 Profit after income tax 9 792 000 The company tax rate is 30 per cent. During the conduct of the audit, the following items of interest were noted by the audit team: Some of the toy crocodile products distributed to department stores by Healesville Sanctuary's wholesale operations were incorrectly priced due to a special one-off 'Crocodile Creature Month' discount not being reflected in the price the department stores were charged. These incorrect sales were made on 23 June 2018. The total misstatement arising from the incorrect sales was $14 261. A number of senior executives flew to an animal conference in Melbourne. From the airport, they hired cars and parked outside the hotel for three nights, ignoring 'No parking' signs. The resulting parking fines were charged against Healesville Sanctuary's meals and entertainment account. The parking fines, totalling $1053, were all due before 30 June 2020. Required: For each of the individual statements listed, explain whether the item should be reported to management or is clearly trivial.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Healesville Sanctuary is a family-owned and operated wildlife park located in Melbourne. Healesville Sanctuary has more than 150 animal species, some of which are loaned from overseas animal parks. Healesville Sanctuary has two divisions for selling merchandise: a retail operation that sells food, beverages, shirts, souvenirs and other novelties to visitors within the park, and a wholesale operation that sells toys to department stores.

The following management figures are relevant for the year ended 30 June 2020:

	$
Total assets	69 120 000
Total current assets	34 560 000
Inventories	28 800 000
Net assets	51 840 000
Profit after income tax	9 792 000

The company tax rate is 30 per cent.

During the conduct of the audit, the following items of interest were noted by the audit team:

Some of the toy crocodile products distributed to department stores by Healesville Sanctuary's wholesale operations were incorrectly priced due to a special one-off 'Crocodile Creature Month' discount not being reflected in the price the department stores were charged. These incorrect sales were made on 23 June 2018. The total misstatement arising from the incorrect sales was $14 261.

A number of senior executives flew to an animal conference in Melbourne. From the airport, they hired cars and parked outside the hotel for three nights, ignoring 'No parking' signs. The resulting parking fines were charged against Healesville Sanctuary's meals and entertainment account. The parking fines, totalling $1053, were all due before 30 June 2020.

Required:

For each of the individual statements listed, explain whether the item should be reported to management or is clearly trivial.

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