Week 9

Question 1

What can we find in the annual report and accounts?

Answer 1

●Strategic Report

●Directors’ Report

Question 2

Who is responsible for preparing the annual report and accounts (words and numbers)?

Answer 2

DIRECTORS (NOT auditors)

Question 3

What should management commentary include?

Answer 3

• Provide management’s view of the entity’s performance, position and progress
• Should provide information to help users to assess the performance of the entity and the actions of its management relative to stated strategies and plans for progress.

Question 4

What are directors and auditors responsibilities?

Answer 4

• Directors prepare the strategic report.

- Auditors read the report to check for inconsistencies between the narrative information and the financial statements.

Question 5

What does the UK Corporate Governance Code cover?

Answer 5

1. Board leadership and company purpose
2. Division of responsibilities
3. Composition, succession and evaluation
4. Audit, risk and internal control