Explain one advantage of auditing.
Explain to the directors the proper accounting treatments for item $1$, $2$ and $3$, making reference to the relevant International Accounting Standards (IAS).
Calculate the revised retained earnings at 31 December 2018 from all the information provided.
Calculate the corrected figure for property, plant and equipment to include in the revised statement of financial position at 31 December 2018.
Calculate the corrected figure for inventory to include in the revised statement of financial position at 31 December 2018.
Calculate the corrected figure for trade receivables to include in the revised statement of financial position at 31 December 2018.
Calculate the corrected figure for other receivables to include in the revised statement of financial position at 31 December 2018.
Calculate the corrected figure for total assets to include in the revised statement of financial position at 31 December 2018.
Advise the directors whether the proposed dividend should be increased. Support your answer by discussing the benefits and drawbacks of your advice for both the company and the shareholders.