Fashion Garments Limited (FGL) is a company engaged in the manufacturing and sale of ready-made garments. The products manufactured by FGL cater to…

As per SA 501, “Audit Evidence-Specific Considerations for Selected Items", the auditor shall obtain sufficient appropriate audit evidence regarding the presentation and disclosure of segment information in accordance with the applicable financial reporting framework by: (1) Obtaining an understanding of the methods used by management in determining segment information, and (2) Performing analytical procedures or other audit procedures appropriate in the circumstances. The auditor's responsibility regarding the presentation and disclosure of segment information is in relation to the financial statements taken as a whole. Accordingly, the auditor is not required to perform audit procedures that would be necessary to express an opinion on the segment information presented on a standalone basis. Further, audit procedure performed by CA Pearl to ensure methods used by the management to present segment information are in accordance with the applicable financial reporting framework should include: Sales, transfers and charges between segments, and elimination of intersegment amounts.Comparisons with budgets and other expected results, for example, operating profits as a percentage of sales.The allocation of assets and costs among segments.Consistency with prior periods, and the adequacy of the disclosures with respect to inconsistencies.