The following are extracts from a typical Independent Auditor’s report for a listed company in the UK.

From the perspective of an external user of financial information, critically discuss the extent to which the statements offer reassurance over the ability of the information reported and the information reported and the effectiveness of the management of the company.

“In relation to the company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or to draw attention to in the relation to the director’s statement...”

“... we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.”

“In our opinion the financial statements give a true and fair view of the state of the company’s affairs...”

Your answer is expected to consider each of the three extracts equally.

Answer rating: 100% (QA)

Audit An audit is an independent examination of financial information of any entity whether profit oriented or not irrespective of its size or legal form when such an examination is conducted with a v... View the full answer