ANSWERS TO CASE STUDIES AND EXAMINATION QUESTIONS
Note
The answers to the chapter questions comprise
1) Suggested points from the Case Studies.
2) Answers to examination questions
2
Chapter 1
Case Study
What benefits would the company get from employing an
independent auditor?
Consider:
Where would they find a suitable auditor?
Would it benefit Bertha to have a proper audit?
Consider:
Examination question
Key points
3
a) Key stakeholders in the company relevant to this issue principally
comprise
b) The company is in a particularly sensitive market and simply providing the
minimum information is not enough. It should disclose the environmental
impact of the its products, information about its health and safety record, its
policies on sales of products overseas etc.
Environmental reporting would be a key issue as shareholders and the public
expect a greater sense of corporate social responsibility from companies,
particularly those where the ethics of their policies might be called into
question
Consider
c) Directors have a duty to protect assets of the company and a wider duty
to the public at large. They must review the policy of dumping and also
consider what they need to do to correct the situation in the dangerous
factory.