For this question you will need to refer to the audit report for Rolls-Royce Holdings plc available at URL: www.rolls-royce.com/~/media/Files/R/RollsRoyce/documents/investors/annualreports/2017-annual-report.pdf (pages 183–194).

(i) Does Rolls-Royce apply UK GAAP or IFRS Standards?

(ii) List all the elements of the Rolls-

Royce audit report that you are able to identify.

(iii) Identify the risks that the auditors considered were most important for their audit.
(iv) How did the auditor respond to the risks you identified in (iii) above?
(v) Discuss the usefulness of the information on risks.
(vi) What materiality level did the auditors use on the audit?
(vii) Did the auditors identify any matters on which they are required to report by exception?

(viii) In the audit report the auditors state that the information contained in the strategic report and directors’ report is consistent with the financial statements.
Have a look at these reports on the Rolls-Royce Holdings plc website and then outline what you believe are the most useful elements or components of each of these reports.
(ix) Was the audit report of Rolls-Royce Holdings plc modified or unmodified?