Accounting 9706 · AS & A Level · Regulatory and ethical considerations

Regulatory and ethical considerations — practice question

Soames Limited’s turnover has been rising, so the directors are now required to prepare audited accounts and appoint an auditor.
(a)[5]

List five duties that the auditor would perform in the course of an audit.

(b)[2]

Explain the meaning of a qualified audit report.

(c)[8]

Explain, making reference to the appropriate International Accounting Standard, the adjustment that needs to be made to the financial statements.

(d)[6]

Analyse the significance to the shareholders of Soames Limited of the auditors giving a true and fair view of the company’s accounts.

(e)[4]

Evaluate the validity of this audit report.

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