The Corporations Act 2001 Requires the Auditor to Report on Certain

question 59

Multiple Choice

The Corporations Act 2001 requires the auditor to report on certain matters only on an exception basis.This means that the auditor need only report particulars of any deficiency, failure or shortcoming in respect of these matters.Which of the following matters should not be reported on an exception basis?

• A)Whether the company has kept financial records sufficient to enable a financial report to be prepared and audited.
• B)Whether the company has kept registers required by the Act.
• C)Whether the auditor has been given all the information and assistance necessary for the conduct of the audit.
• D)Whether the financial report provides a true and fair view.

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Definitions:

Percentage of Sales Budgeting

A method of budgeting where marketing and/or advertising expenses are based on a predetermined percentage of past or forecasted sales.

Competitor's Absolute Level

A measurement or assessment of a competitor's total performance or standing in the market without relative comparison.

Market Share

The fraction of a market occupied by a particular company or product.

Promotion Objectives

Goals that an organization aims to achieve through its promotional activities, such as increasing brand awareness, generating sales, or enhancing product knowledge among consumers.