Auditing Brexit Capital Limited Directors Report and Financial Statements Period from 24 March 2019 (Date of Incorporation) To 31 December 2019

1Running head: AUDITING
Auditing
Brexit Capital Limited
Directors Report and Financial Statements
Period from 24 March 2019
(Date of Incorporation)
To 31st December 2019

2AUDITING
Table of Contents
1.0 Directors Report...................................................................................................................3
1.1 Brief Introduction.............................................................................................................3
1.2 Principle Activity.............................................................................................................3
1.3 Directors...........................................................................................................................3
1.4 Business Review..............................................................................................................3
1.5 Permitted Indemnity Provision........................................................................................4
1.6 Auditor.............................................................................................................................4
2.0 Independent Auditor’s Report..............................................................................................4
2.1 Title of the Auditor...........................................................................................................4
2.2 Opinion on Financial Statements.....................................................................................4
2.3 Basis for Opinion.............................................................................................................5
2.4 Additional Information Other Than Financial Statements...............................................5
2.5 Directors Responsibility...................................................................................................5
2.6 Auditor’s Responsibility..................................................................................................5
3.0 Income Statement.................................................................................................................6
4.0 Financial Position.................................................................................................................6
4.1 Revenue............................................................................................................................8
4.2 Corporation Tax Expense.................................................................................................8
4.3 Amounts Due to Shareholders.........................................................................................8
4.4 Changes in Equity............................................................................................................8
5.0 References..........................................................................................................................10
Appendix..................................................................................................................................12
1. Letter of Appointment......................................................................................................12
2. Minutes for Appointing Auditor......................................................................................12
3. Proposed Audit Adjustment.............................................................................................13

3AUDITING
1.0 Directors Report
1.1 Brief Introduction
Brexit Capital Limited has incurred losses in the year 2019. The company conducts various
business transactions within the market. The company has four key shareholders, who have
contributed well in the organisation but the asset of these shareholders can lose on demand. In
the current condition, it has been found that the growth of the company is poor.
1.2 Principle Activity
Principle activity can be defined as the process, which promotes value-added business or
financial activity, which can help in growing and making strong economic conditions for the
company (Tilastokeskus n.d.). In relation to Brexit Capital Limited, the company follows
party confirmation process for establishing a legal business. In this process, Brexit Capital
Limited provided disclose account form to know the loan amount and security type, which
can be considered to be the principal activity of the company.
1.3 Directors
The director plays a major role in any organisation because people of the entire organisation
have good faith in that person. In addition, the director must have the proper interest, skill,
and diligence towards the organisation (Delotte 2013). Dwi Jaya is the director of Brexit
Capital Limited, wherein three people are helping her to develop the business i.e. Dwi Mulia,
Dikari, and Tan Khin Pin.
1.4 Business Review
Based on the current report, Brexit Capital Limited is facing loss. It can be considered to be
bad for the organisation, as it can lead the company towards insolvency.

4AUDITING
1.5 Permitted Indemnity Provision
Permitted Indemnity Provision can be referred to as a legal process, which provides security
against the liability (Companies Registry 2012). In relation to Brexit Capital Limited, the
company has four major shareholders i.e. Dwi Mulia, Dikari, Tan Khin Pin, and Dwi Jaya
with a liability of 34,779 GBP, 15,979.57 GBP, 51,693 GBP, and 14,984 GBP respectively.
1.6 Auditor
Brexit Capital Limited hired UWL C.P.A as the auditor, which will focus on analysing the
financial background of the organisation. The company does not have any personal auditor.
2.0 Independent Auditor’s Report
2.1 Title of the Auditor
A Chartered accountant of UWL C.P.A is the main auditor in this case. The entire account of
Brexit Capital Limited has been properly checked by the above-mentioned charter
accountant. It will help the company to grow its business effectively.
2.2 Opinion on Financial Statements
The company prepares reports, which include Trial Balance, Balance Sheet, Ledger Account,
and Profit/Loss account. Each of the statements has certain drawbacks, which need to be
improved by the company. In relation to the trial balance, the company does not record all its
business activities in the financial book such as revenue activities. Only interest paid has been
reflected by the company. Other revenue activities are not shown properly. In relation to the
balance sheet, the company does not reflect any kind of assets and its depreciation value. The
working capital is not included in the report.