Question 2: (a). The annual audit of companies has evolved over time to add credibility to the financial statements and has become a key feature of company law all over the world. Required: i. Identify and explain THREE key characteristics of an audit report. ii. To qualify for the exemption from statutory audit as a small company, explain the conditions to be met. iii. The independent report describes three points that should be included in the scope of a statutory audit. Identify the THREE points. (b) According to the Conceptual framework, one of the reasons for producing a financial statement is to meet the needs of the external users. Required: Mention two advantages of the conceptual framework and highlight five economic decisions likely to require the use of financial statements. (c). During the planning stage of an audit, there could be possible reasons for the following changes. Discuss the possible reasons: i. An increase in inventory turnover; ii. An increase in average collection period; iii. An increase in average in debt ratio ; iv. A decrease in the times interest earned ratio ; and v. An increase in the return on total assets