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Report: Shareholder and Management

   

Added on  2019-09-30

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What are the main difference between the report shareholder and management? Provide examples.The report shareholders refer to the individuals who have monetary stake in the company thatis they have invested money in the company by purchasing shares of the company. On the other hand, the management referred in the report are the individuals who manage the company on behalf of owners and shareholders. Owners are also the shareholders. In some cases, owners also act as the management of the company. As for example, the chief executive Steve Rowe, chief financial officer Helen Weir, food director Andy Adcock and others represent the management of the company. Provide 5 examples where the external auditor can obtain reasonable assurance of the financial statement?Given below are five examples:-Use of sampling techniques-Cost-benefit analysis-Inherent limitation of financial statement-Legal limitation-Engagement letter limitationProvide an example of statement of auditor’s responsibility from a report of a listed company?Given below statement from the M&S financial statement reflects the auditor’s responsibility:“The Group audit team performs the audit of the UK business without the involvement of a component team. During the course of our audit, the Group audit team conducted 13 distribution centre and 18 retail store visits in the UK to understand the current trading performance and, at certain locations, perform tests of internal controls and validate levels of inventory held.”Provide an example of statement of management responsibility from an audit report of a listed company.Given below statement from the M&S financial statement shows management responsibility:“Implementing actions to recover and grow Clothing & Home: > Re-establish style authority:focus on product, quality and fi t; > Restore price position: lowering prices and reduced promotional stance; > Enhanced customer experience: sharper ranges, better availability and investment in store staffing.”Provide an example of statement of auditor’s opinion form an audit report of listed company.Given below is the opinion from the M&S’s financial report 2016:
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“IN OUR OPINION: The financial statements give a true and fair view of the state of the Group’s and of the parent Company’s affairs as at 2 April 2016 and of the Group’s profi t for the 53 weeks then ended.”“The Group fi nancial statements have been properly prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.”What are different types of audit opinions?Different types of opinion can be Qualified Opinion, Adverse Opinion, and Disclaimer of Opinion.Why is a modified opinion required?It is required when the auditor has some conclusion that the audit evidence obtained is not free from any form of misstatement or the auditor is unable to obtain sufficient appropriate audit evidence to conclude that the financial statement is not free from misstatement. Provide three circumstances where the auditors can be made liable for the audits carried out.Auditors can be sued for negligence if they are breaching the duty of care for the third party as the result suffers the loss. If the auditor issues inappropriate audit opinion, then they can bemade liable. Moreover, the presence of any misleading information in the audit report can lead to holding the auditors liable.In UK what is implied by an unmodified audit report.Unmodified report means that contains the unmodified opinion.What is an auditor saying in disclaimer of opinion?The disclaimer of opinion says that the information provided cannot be opinionated considering the limitations of the examinations conducted.Review the management letter of both Facebook and Marks and Spencer. Provide the top 5 key areas addressed in both companies.Given below are the top 5 areas addressed in both the companies:Cyber Security: Proactive approach has been taken towards the cyber security of the company system and software.Business Continuity: Several initiatives have been made for continuing the business such as opening more retail stores in the case of M&S case, and actively working on Oculus in the case of Facebook.Governance and Compliance: Whistleblowing, anti-bribery, code of ethics, employees awareness, and compliance monitoring has been given attention.
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