ou are a partner in Collins LLP (Collins), a large, international firm of accountants and auditors. One of your audit clients is Rex plc Group (the Group), a UK-based, international group of automotive manufacturing companies, and a member of the UKs FTSE-250 list of companies.

The audit team that you lead has completed the final audit of the Group for the year ended 31 December 2021. The team has completed the interim audit with no outstanding issues. The final audit is complete with one outstanding issue.

You are finalising the audit and currently deciding on the contents of the audit report. Extracts of four paragraphs from the draft audit report are set out in boxes A to D below.

A	In our opinion, the financial statements give a true and fair view of the state of the Groups and of the parent companys affairs as at 31 December 2021 and of the Groups profit for the year then ended.

Required

(a) Identify and briefly explain the purpose of the paragraph in box A.