The Companies Act 2008 and its accompanying Companies Regulations, 2011 require that every company and...
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Accounting
The Companies Act and its accompanying Companies Regulations, require that every company and close corporation calculate what is termed its 'public interest score'
YOU ARE REQUIRED TO:
a Explain the term public interest score, and how it is calculated.
b State whether the following statement is true or false: All public and stateowned companies must calculate their public interest score to determine whether they must have their annual financial statements audited. Justify your choice.
c Explain fully, the link between the public interest score of a private company and the type of assurance engagement if any to which the company must subject its annual financial statements.
d State whether the following statement is true or false: All companies that hold assets in a fiduciary capacity must have their annual financial statements audited, regardless of their public interest score. Justify your choice.
e Briefly explain how a company that is not required to have its annual financial statements audited in terms of the Companies Act or its public interest score, may voluntarily elect an audit.
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