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Chapter 3
Case Study
What provisions of the Companies Act are Bertie, Angela and
Mainbrace Ltd not complying with?
Consider:
What should they do as a matter of urgency to correct this situation?
2) Winfred Metal Reclamation Ltd
(a)Is it possible for this company to dispense with an audit? Is this a
good idea?
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(b)Can the company file abbreviated accounts? What should the
auditor do if they do?
The company can file abbreviated accounts. The auditors must consider
xWhether the company meets the appropriate criteria
Examination question
All of the detailed information is available from the text.
Particular information is
a) Document the current regulatory framework for UK auditing.
(b) Describe the key roles of the Financial Reporting Council (FRC) and the
The Financial Reporting Council, (FRC) together with its associated bodies, is
responsible for the standards and regulation of financial reporting in the United Kingdom.
The Professional Oversight Board (‘POB’), which includes the Audit Inspection Unit
(‘AIU’) provides independent oversight of the regulation of the auditing profession by the
Recognised Supervisory and Qualifying bodies. Its function includes:
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(c) Document the aims of the Auditing Practices Board (APB) and detail
the objectives by which the APB intends to achieve its aims.
The APB is committed to leading the development of auditing practice in the United
Kingdom and the Republic of Ireland so as to:
The Board intends to achieve its aims by
xEstablishing Auditing Standards which set out the basic principles and essential
procedures with which external auditors in the United Kingdom and the Republic