Published Accounts

Created by: LEIGHSS2002
Created on: 13-05-21 16:38

State the difference between an Auditor's Qualified and Unqualified Report.

Unqualified Auditor's Report - Often referred to as a clean report. It will state that in the auditor's opinion: the financial statements give a true and fair view of the state of affairs of the company at the end of the year and of its P&L account for th

1 of 8

Name the agencies that regulate the production, content and presentation of company final statements.

The Government - Legislation
The European Union - Directives
The Accountancy Profession - FRS's and SSAP's
The Stock Exchange - Listing Rules

2 of 8

State three items of information that must be included in a Director's Report.

The dividends recommended for payment.
The amount to be transferred to reserves.
A report of any changes in the nature of the company's business during the year.
A fair review of the development of the business of the company during the year and of the po

3 of 8

Explain the term exceptional item and give an example.

This is a material item of significant size. It is a profit or loss that must be shown separately in the P&L Account because of size.

Example - profit or loss on sale of fixed asset, large bad debt.

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What is an audit?

An audit is the independent examination of, and the expression of opinion on the financial statements of an enterprise by an appointed auditor.
The main objective of an audit is to enable the auditor, in keeping with the requirements of the Companies Acts

5 of 8

State how a company would deal with a Contingent Liability which is possible but unlikely.

It is not necessary to make provision in the accounts, but a note should show the nature of the liability, an estimate of the amount and an opinion regarding the outcome.

6 of 8

What regulations must accountants observe when preparing financial statements for publication?

The Companies Acts
The Financial Reporting Council
The Accounting Standards Board
The Stock Exchange

7 of 8

State how a company should deal with a contingent liability which is probable.

The estimated amount should be provided for in the accounts and a note should show the nature of the loss.

8 of 8

Other cards in this set

Card 2

Front

Name the agencies that regulate the production, content and presentation of company final statements.

Back

The Government - Legislation
The European Union - Directives
The Accountancy Profession - FRS's and SSAP's
The Stock Exchange - Listing Rules

Card 3

Front

State three items of information that must be included in a Director's Report.

Back

Card 4

Front

Explain the term exceptional item and give an example.

Back

Card 5

Front

What is an audit?

Back

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Published Accounts