Questions3

3.1 Summarize the four basic financial statements required by both GAAP and IFRS, explaining how each of the four statements contributes to our knowledge of the financial health of the company concerned.

3.2 Critically discuss the relationship between the performance pressures on executives in a competitive environment, corporate governance scandals, the intention of appointing external/independent auditors and the extent to which you believe that external/independent auditing is effective.