Auditing Task 1 Essay

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Pages: 4
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Question 1
1. Name of Regulation
2. Commencement
3. Definitions
4. Prescription of certain statutory bodies
5. Identification of audited financial reports
6. Inclusion of unaudited financial reports and information
7. Detailed budget
8. Place for inclusion of detailed budget
9. Annual reports of prescribed statutory bodies
10. Additional matters for inclusion in annual reports
11. Report of operations to include comparison of investment performance
12. Report of operations to include comparison of liability management performance
13. Numbers and remuneration of senior executives
14. Information and particulars in report of operations
15. Form of annual reports-generally
16. Form of annual reports-presentation to Parliament
17. Public availability of annual reports
18. Exemptions
19. Exemption for small statutory bodies to report annually on certain matters
20. Repeal and savings

Question 2
3.1.1 Care and Diligence -- Directors and Other Officers - Civil Obligations
3.1.2 Good Faith -- Directors and Other Officers - Civil Obligations
3.1.3 Use of Position -- Directors, Other Officers and Employees - Civil Obligations
3.1.4 Use of Information -- Directors, Other Officers and Employees - Civil Obligations
Question 3
External auditors are independent accounting/auditing firms that are hired by companies subject to an audit. External auditors express their own opinions on whether the financial statements of the company in question are free of material misstatements (these could be due to fraud, error or otherwise).

Question 4
Unqualified opinion
Qualified opinion
Adverse opinion
Disclaim of opinion report
Going Concern
Other explanatory informations and paragraphs

Question 5
The Directors' Report arose out of a general move for greater transparency in corporate governance. It is useful for shareholders to find out issues such as whether the company has good finances, whether the market has potential, and whether the business has the structural capacity to expand into new opportunities. In order for shareholders to make informed decisions when casting their votes at annual or other meetings, the Directors' Report provides part of that essential minimum standard of information. It is complemented by the Director's Remuneration Report and the Company Accounts.

Question 6
A typical corporate governance statement includes a brief statement outlining the mission of the company and defining its core values. It will also highlight the qualities inherent in the structure of the organization of the company that are designed to limit abuse of power by the board of directors. For instance, the statement might explain that the company has a policy of keeping their board of directors mostly independent from the officers of the company to ensure that there is no conflict of interest with management of the organization, such as the determination of salaries of officers.
Question 7
Risk is defined as "the chance of something happening that will have an impact upon objectives. It is measured in terms of likelihood and consequence".~
Risk Management is defined as "the culture, processes and structures that are directed towards effective management of potential opportunities and adverse effects".~
Risk Management is an integral part of good management. The application of sound risk management allows for continual improvement in decision making and processes.
Effective risk management involves the systematic application of management policies, procedures and practices and should include a clear understanding of roles and responsibilities.
Question 8
The Company’s core activities centre on the retailing, manufacture and import of furniture. To this end, the Company
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