Question 1b
Marking Guide
insurance claim | |
| generally 1 mark per matter/procedure: | |
| matters: | |
| – accounting treatment for contingent asset | |
| – claim may not be covered by insurance | |
| – amount of the claim seems unreasonable | |
| – materiality | |
| – potential risk of material misstatement and impact on report | |
| procedures: | |
| – inspect claim and supporting documentation | |
| – inspect insurance terms and conditions | |
| – review correspondence | |
| – communicate with insurance provider | |
| – enquiry with lawyers | |
| maximum marks | 8 |