1. As part of stewardship requirements, management is required to prepare an Annual Report. The content of the Annual report includes, but is not limited to these elements: - Director's letter to shareholders - Management discussion and analysis - Detailed and audited financial statements. - Auditor's report - Accounting policies Give a detailed description of these elements and their significance in the Annual report. According to the requirements of the IFRS, a company should prepare Financial statements as a going concern, unless management concludes that the entity is not a going concern, the financial statements should not be prepared on a going concern basis, in which case they should disclose the reasons. Required: a) Describe the going concern concept [2] b) What are the responsibilities of management when preparing financial statements as a going concern and what factors threaten the continued existence of a company which managers should disclose [15] c) If the auditors consider that uncertainties (factors threatening company existence) are not adequately disclosed, then they will give a qualified opinion. What is a qualified opinion? [3] d) Discuss the usefulness of audit reports [25 mark As part of the Annual Report, a report on corporate governance is an essential element a) Define corporate governance [2] b) Some of the most common principles of corporate governance include, accountability, responsibility, transparency, fairness and risk management. Explain these in the context of directors' duty of stewardship towards shareholders [3 marks each][15] c) Give a detailed outline of the 'objective' provisions of the combined code that require a review by the auditors on compliance in organisations [8] 4. You are a director of Polaris company and you are preparing end of year reports for the organisation a) What information would you put under the 2 headings: - Operating review [10] - Financial review [ 10 ] b) Explain the importance of corporate reporting [5] .

1. 1. As part of stewardship requirements, management is required to prepare an Annual Report.
The content of the Annual report includes, but is not limited to these elements: - Director's letter
to shareholders - Management discussion and analysis - Detailed and audited financial
statements. - Auditor's report - Accounting policies Give a detailed description of these elements
and their significance in the Annual report. According to the requirements of the IFRS, a
company should prepare Financial statements as a going concern, unless management concludes
that the entity is not a going concern, the financial statements should not be prepared on a going
concern basis, in which case they should disclose the reasons. Required: a) Describe the going
concern concept [2] b) What are the responsibilities of management when preparing financial
statements as a going concern and what factors threaten the continued existence of a company
which managers should disclose [15] c) If the auditors consider that uncertainties (factors
threatening company existence) are not adequately disclosed, then they will give a qualified
opinion. What is a qualified opinion? [3] d) Discuss the usefulness of audit reports [25 mark As
part of the Annual Report, a report on corporate governance is an essential element a) Define
corporate governance [2] b) Some of the most common principles of corporate governance
include, accountability, responsibility, transparency, fairness and risk management. Explain these
in the context of directors' duty of stewardship towards shareholders [3 marks each][15] c) Give
a detailed outline of the 'objective' provisions of the combined code that require a review by the
auditors on compliance in organisations [8] 4. You are a director of Polaris company and you are
preparing end of year reports for the organisation a) What information would you put under the 2
headings: - Operating review [10] - Financial review [ 10 ] b) Explain the importance of
corporate reporting [5]