Cadbury Schweppes is a major international company that manufactures markets and sells confectionery and non-alcoholic beverages. With origins stretching back over 200 years, Cadbury Schweppes’ brands are enjoyed today in almost every nation in the world. They include regional and local favourites such as Cadbury Dairy Milk, Trident, Halls, Dentyne, Bubblicious, Bassett’s and Trebor in confectionery and Dr Pepper, Schweppes, Snapple and 7Up in beverages. The company employs around 50,000 people. Cadbury Schweppes’ Head Office accounts team collects the information required to create these statements from the company’s accountants and financial teams around the world. The legal responsibility for producing financial statements that present an accurate picture of the company’s performance over the period lies with the company’s directors. These statements must be checked by an external audit, where the company hires a firm of accountants to verify that it provides a true and fair record and complies with legal requirements. The exact statutory requirements for limited companies to prepare and publish accounts are laid down for limited companies through the Companies Act 1985, regulated by Companies House, and for publicly listed companies through European law, the Listings Rules, regulated by Financial Services Authority (FSA).

Define why would a company such as Cadbury need to hire an audit firm?

Discuss the main role played by an audit firm in Cadbury? Explain how the auditors add credibility to the financial statements and thus make the users gain trust in the profession.

Answer rating: 100% (QA)

Cadbury is a Limited Company and the statutory requirements for limited companies to prepare and publish accounts are laid down through the Companies ... View the full answer