Question
Regarding Letter of Credit (LC) and Bank Guarantee
(BG): 1. LC is a primary payment mechanism used in trade. 2. BG is a contingent liability for a bank. 3. In a "Revocable LC," the opening bank can cancel the LC without notice to the beneficiary. Which of the statements above is/are correct?ÂSolution
All are correct. However, in modern international trade (UCP 600), almost all LCs are now "Irrevocable" by default.
As per SA 230, audit working papers must be retained for:
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