Question $4(25$ marks, $37,5$ minutes$)$

You are senior in an audit engagement. The trainees have the following questions pertaing to the Companies Act $2008.$

The Companies Act $2008$ and its accompanying Regulations $2011$ require that every compary and close corporation calculate what is termed its "public interest score".

YOU ARE REQUIRED TO;

$($a$)$ Explain the term public interest score and how it is calculated. $(8$ marks$)$

$($b$)$ Explain what happens to a company that has a public interest score that is below $350,$ say $349$ but above $100,$ owner managed, but financial statements externally complied. $(5$ marks$)$

$($c$)$ Explain fully, the link between the public interest score of a privale company and the type of assurance engagement $($if any$)$ to which the company must subject its anrual financial statements. $(10$ marks$)$

$($d$)$ Briefly explain how a company that is not required to have its annual financial statements audited in terms of the Companies Act or its public interest score, may voluntarily elect an audit. $(2$ marks$)$