Week 2 - Preconditions

Question 1

How many things need to be in place?

Answer 1

Two

Question 2

What is the first thing that must be in place?

Answer 2

There is an acceptable financial reporting framework to be applied to the preparation of the financial statements - accounts have been prepared in line with accounting standards

Question 3

What is the second thing that must be in place?

Answer 3

Management understand and acknowledge its responsibilities for preparing the financial statements and providing the auditor with access to all relevant information and explanations - in line with Companies Act 2006 and are true and fair