- 20 Marks
AA – May 2019 – L2 – Q4 – Audit Reports
Exploration of audit report features, conditions for small company audit exemptions, and scope of statutory audit.
Question
Over time, the annual audit was developed as a way of adding credibility to the financial statements produced by management. The statutory audit is now a key feature of company law throughout the world.
You are required to:
a. Identify and explain THREE key features of an audit report. (12 Marks)
b. Explain the conditions under which a company can be classified as a small company in order to be exempted from an audit. (5 Marks)
c. Identify THREE points that would be included in the scope of the statutory audit as described in the independent auditor’s report. (3 Marks)
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