Question: Refer to Auditing in Action 12-5 , which provides a brief overview of the restatement of Tesco's commercial income from its suppliers related to payments

Refer to Auditing in Action 12-5 , which provides a brief overview of the restatement of Tesco's commercial income from its suppliers related to payments for the use of promotional space as well as various discounts and rebates. Go to Tesco's 2014 annual report at www.tescoplc.com/index .asp?pageid=548 . Access the 2014 auditor's report via the link provided.
REQUIRED
a. Read the Areas of Particular Audit Focus and explain
(1) Why commercial income was an area of focus (significant risk), and
(2) The audit approach for that risk.
b. Based upon what you have read in the chapter, does the audit approach appear reasonable? Explain why.
c. Why do you think the auditors concluded that the financial statements were not materially misstated?

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Below is the excerpt from the auditors report Area of Focus How the scope of our audit addressed the area of focus Recognition of Commercial Income Commercial income promotional monies discounts and r... View full answer

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