Explain the function of an external auditor.
Explain how the items in notes 1 and 2 should be accounted for.
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 appear in the statement of financial position at 31 December 2017.
State the amount at which retained earnings should appear in the statement of financial position at 31 December 2017.
State the value at which other payables should be included 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.