QUESTION $1(50$ marks$)$

Santa $($Pty$)$ Ltd $($Santa$)$ is a new gift shop that sells cards, different gifts, and other gift

ideas to the public. Santa started trading on $1$ March $2012,$ and their year$-$end is $28$

February $2023.$ Santa had an excellent sales year, and they have their financial

statements compiled by Jane Mcenroe, a newly qualified CA$($SA$)$ who is busy starting

her own business, Mcenroe and Partners Incorporated $($Mcenroe$).$

Below are details regarding the financial statements of Santa:

Shareholders of Santa $82$

Employees at $1$ March $2022256$

Employees at $28$ February $2023244$

Long$-$term liabilities R$75034295$

Short$-$term liabilities R$290375$

Turnover for the year R$132052039$

The information regarding Jane Mcenroe is as follows:

Jane met the requirements for registration as a CA$($SA$)$ in November $2022$ and

decided to only register as a Registered Auditor $($RA$)$ in January $2024.$ Jane is

currently not registered with any other Professional body. Jane does not have a

personal financial interest in Santa and has never been involved in the day$-$to$-$day

management of Santa. Jane is not a prescribed officer or full$-$time executive employee

and is not related to anyone at Santa.

REQUIRED:

$1\mathrm{.}1$ Define the Public interest score with reference to the Companies Act $2008$

and Regulation $26.$

$(4$ marks$)$

$1\mathrm{.}2$ Calculate the Public Interest Score for Santa $($Pty$)$ Ltd$.$

$(10$ marks$)$

ANNEXURE F : FORMATIVE ASSESSMENT $1$

$60$ HLAA$130-1-$Jan$-$Jun$2024-$FA$1-$MK$-$V$2-30112023$

$1\mathrm{.}3$ Discuss whether the financial statements of Santa are internally or

independently compiled and state your reasons.

$(17$ marks$)$

$1\mathrm{.}4$ If the Public interest score for Santa $($Pty$)$ Ltd is $260,$ and the financial

statements are independently compiled, please advise if the financial

statements need to be audited or independently reviewed. Include in your

answer the requirements of Regulations $28$ and $29$ to motivate your answer.

$(19$ marks$)$