ACCOUNTING
Which one, or which multiple, of the four main corporate governance functions of the board of directors is the Section 172 (1) statement intended to fulfil? Explain your answer.
(4 marks)
Comment on the relation between the scope of the corporate governance perspective of Section 172 (1) of the Companies Act 2006 and the scope of the corporate governance perspective in the requirement of the Corporate Governance Code 2018 to issue a Statement 172 (1).
(3 marks)
Comment on the extent to which the S172 statement above fulfils the requirement of the Corporate Governance Code 2018. Explain for each stakeholder group what could be improved and why. Assume that the five stakeholder groups have been identified correctly.
(8 marks)
Is the audit opinion Deloitte LLP issued regarding the financial statements of Marks and Spencer PLC for the 52 weeks ended 28 March 2020 an unmodified or a modified opinion? Explain your answer.
(3 marks)
In respect of Marks and Spencer PLC’s write down under the Inventory provisions for UK Clothing and Home, comment on how the auditors will have ensured that it is true and fairly stated?
(8 marks)
In your own words, explain:
What the going concern assumption is
How any material uncertainties over Marks and Spencer PLC’s ability to continue as a going concern contribute to the three types of risk that constitute Deloitte LLP’s audit risk.
