We have obtained reasonable assurance that in our opinion the financial statements, referred to above, taken as a whole:

(1) give a fair view of the financial position of AB Limited a t . . .

1 9— and of the results of its operations and cash flow for the year then ended, based upon the sufficient presentation and disclosure of the information contained in the financial statements in accordance with accounting principles appropriate to the circumstances of the business;

(2) comply with the Companies Act 1985.

AUDIT REPORTS 197

(a) Does the above report comply with the present UK Companies Act reporting requirements?

(b) In what way does it differ from the present style of audit report used in the UK, and do you consider it to be an improvement?

(c) To what extent does the report fail to take up all ten suggestions made in the chapter as regards the content of a 'freestanding'

audit report?