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Pace Ltd is a listed company that operates in the sports entertainment sector. The Company, was registered on 30 September 2016 with an authorised
Pace Ltd is a listed company that operates in the sports entertainment sector. The Company, was registered on 30 September 2016 with an authorised share capital that includes 900 000 ordinary shares. The company has already issued 400 000 ordinary shares at R5 each before the current year ending 31 December 2019. The following activities took place with regard to the only issue of shares during the current financial year ending 31 December 2019: 1. On 20 March 2019, the company resolved to offer 90.000 ordinary shares at an issue price of R8 per share. The offer was underwritten by Fast Finance for an underwriter's commission of 6%. The agreement was signed on 31 March 2019. 2. The offer was made to the public with a closing date for applications of 31 May 2019. By closing date the company received monies for 86 500 applications. 3. Allotment was concluded on 30 June 2019. 4. Settlement was made with the underwriter on 15 August 2019. Share issue expenses of R5 340 were paid on 20 August 2019. 5. Directors had agreed to write off the share issue expenses to the share capital account. Required: 3.1 Record the above transactions relating to the issue of shares for the year ended 31 December 2019. (13) 3.2 Auditors have an important role to play in a listed company. Briefly outline the role played by auditors and list at least 5 differences between an internal auditor and an external auditor. (12)
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