(ii) Evidence

– Operating licence, reviewed for conditions relating to health and safety and for potential fines and penalties 
– A written representation from management on their intention (or not) to bring the non-compliance to the attention of the National Coal Mining Authority
– A copy of board minutes where the accident has been discussed to identify the rationale behind the non-disclosure
– A copy of reports issued by engineers or other mining specialists confirming the extent of the damage caused to the mine by the accident
– Any quotes obtained for work to be performed to make the mine safe and for blocking off entrances to abandoned tunnels
– Confirmation, possibly by physical inspection, that the undamaged portion of the mine is operational
– A copy of the surveyor’s report on the residential properties, reviewed for the expert’s opinion as to whether they should be demolished
– A review of correspondence entered into with the local residents who have been relocated, to confirm the obligation the company has committed to in respect of their relocation
– Copies of legal correspondence, reviewed for any further claims made by local residents
– A review of the Ledge Hill Mine accident book, for confirmation that no one was injured in the accident
– A copy of management’s impairment review, if any, evaluated to ensure that assumptions are reasonable and in line with auditor’s understanding of the situation
– Confirmation that impairment losses have been recognised as an operating expense
– A review of draft disclosure notes to the financial statements where provisions and contingent liabilities have been discussed
– A review of cash flow and profit forecasts, forming a view on the overall going concern status of the company

Maximum marks 14