An auditor’s report prepared in accordance with ISA 700 (UK), Forming an Opinion and Reporting on Financial Statements, expresses an opinion on a number of matters.
Some of these matters are required by the Companies Act 2006 to be reported on by exception only.
Which ONE of the following are reported on by exception only?
Select ONE answer:
- The financial statements have been prepared in accordance with the requirements of the Companies Act 2006
- Information in the strategic report and the directors’ report is consistent with the financial statements
- Adequate accounting records have NOT been kept
- Directors’ remuneration has been disclosed correctly
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 4
- Not correct
- Not correct
- Not correct
- Correct => As per Companies Act 2006, ‘Directors’ remuneration has been disclosed correctly’ is reported on by exception.
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