Question
You are a partner in Collins LLP (Collins), a large, international firm of accountants and auditors. One of your audit clients is Rex plc Group
You are a partner in Collins LLP (Collins), a large, international firm of accountants and auditors. One of your audit clients is Rex plc Group (the Group), a UK-based, international group of automotive manufacturing companies, and a member of the UKs FTSE-250 list of companies.
The audit team that you lead has completed the final audit of the Group for the year ended 31 December 2021. The team has completed the interim audit with no outstanding issues. The final audit is complete with one outstanding issue.
You are finalising the audit and currently deciding on the contents of the audit report. Extracts of four paragraphs from the draft audit report are set out in boxes A to D below.
C | This report is made solely to the Companys members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Companys members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Companys members, as a body, for our audit work, for this report, or for the opinions we have formed. |
Required
(c) Identify and briefly explain the purpose of the paragraph in box C.
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