Question one $(20$ marks$)$

Apex Limited manufactures and sells confectionery and non$-$alcoholic beverages. With origins,

stretching back over $200$ years, Apex$$s brands sells in almost every nation in the world. They

include regional and local favorites such as Apex Dairy Milk, Trident, Halls, Dentyne,

Bubblicious, Bassett's and Trebor in confectionery and Dr Pepper, Schweppes, Snapple and $7$Up

in beverages. Currently, the company has employed $50,000$ people. Apex's Head Office accounts

team collects the information required to create these statements from the company's accountants

and financial teams around the world. The legal responsibility for producing financial statements

that present an accurate picture of the company's performance over the period lies with the

company's directors. An external Auditor checks the financial statements to verify that they

provides a true and fair record and complies with legal requirements.

Required:

i$)$ Explain four main objectives of Apex financial reporting

$(4$ marks$)$

ii$)$ Discuss how Apex would apply matching and consistency principles in preparing

its financial statements $(4$ marks$)$

iii$)$ Explain how Apex can tract the performance of all its subsidiaries

$(4$ marks$)$

iv$)$ Why should Apex bother in preparing consolidated financial statements?

$(4$ marks$)$

v$)$ Explain why a competent external auditor must audit financial statements of

Apex.