QUESTION 1

The growth of large diversified companies has presented problems for users of financial reports. Segment reporting goes some way towards meeting the information needs of investors and other users.

Required:

a) Discuss the three (3) direct tests of the benefits of segment reporting, namely, studies of user decision-making, studies using researchers forecasts and stock market reactions to segment disclosures.

(15 marks)

1. Briefly explain how segment reports help users of financial statements.

(5 marks)

(Total: 20 marks)

QUESTION 2

The globalization of capital markets has shown the need for a clearly defined role for auditing as a means to add credibility to the financial information provided by companies seeking finance in international capital markets. (Nobes and Parker, 2006, page 483).

Required:

a) Explain the role of international audit firms in the internationalization of auditing.

(10 marks)

b) Describe the planning and risk assessment stage of the audit process.

(10 marks)

Dear tutor, kindly see the question above and provide an appropriate response to it, kindly give proper reasonable expalanation. please do not copy paste or plagiarize your response. thanks you