Explain the part played by an external auditor.
Explain the appropriate accounting treatment for the items in notes 1 and 2.
Calculate the revised profit for the year ended 31 December 2017 after allowing for notes 1, 2 and 3.
State the amount at which the software licence should appear in the statement of financial position at 31 December 2017.
State the amount at which inventory should be shown in the statement of financial position at 31 December 2017.
State the amount at which retained earnings should be shown in the statement of financial position at 31 December 2017.
State the amount at which other payables should be shown in the statement of financial position at 31 December 2017.
Evaluate whether the directors should purchase the computer software or obtain the right to use it for three years. Justify your answer.