(main)[10]
Prepare a revised statement of financial position for G Limited at 31 December 2016 once the auditor’s findings have been taken into account.
(a)[10]
Prepare the revised statement of financial position as at 31 December 2016.
(b)[5]
Explain how items 1 and 2 should be accounted for in the financial statements.
(c)[4]
Explain the role played by an external auditor.
(d)[2]
Explain why the audit report of a limited company is addressed to the company’s shareholders rather than to its directors.
(e)[4]
Advise the directors whether the inventory valuation method ought to be changed or not. Justify your answer.