Questions and Answers of External Auditing

Bangi Chemicals Ltd make chemicals for the defence industry. They had no subsidiary companies but in mid 20x7, they acquired 60 per cent of the share capital of an American company for £6m paid
Tickitt & Run, the auditors to Daffodil Ltd, gave an unqualified report on 14 December 20-7 on the accounts for the year ending 30 June 20-7. These accounts were seen by The Wednesfield Bank PLC in
Horsebox, Postillion & Co. are a city firm of Chartered Certified Accountants. The firm’s accounts are produced by the administration partner but are subject to audit by Blanket, Mange, another
Cuthbert Ltd outsources most of its accounting function to Speedy Accounting Services Ltd. They have found the relationship with Speedy very effective. However, recently it has come to Cuthbert’s
Pingo Manufacturing Ltd imports electronic components and assembles them in a factory to make consumer gadgets which appeal to a younger market. They have traded have traded successfully for many
Tickitt & Run are auditors of the Zombrit Group PLC. The accounts for the year ending 31.12..20x7 are being subjected to the final review. The following matters have been noted by the audit
Tickitt & Run have just completed the audit of Gofaster Motors Ltd for the year ended 31 December 20x7. They asked one of the audit staff to draft the audit report and he produced this:‘Report of