Part A (85%) relates specifically to Sherbet Ltd
You have been asked by your manager, Priya, to write a report providing advice to Sherbet Ltd on a number of governance and audit matters.
Note. You are not required to include an executive summary in your report, but you should include a brief introduction and overall conclusion in your report.
Part B (15%) Reflection
You are required to reflect on the skills you have learnt throughout your university degree.
Requirement:
In ONE document address the two parts outlined below in the required format.
Part A – Sherbet Ltd (Maximum 2250 words)
Produce a report to the directors addressing the matters raised by the client.
1. A concise explanation of the applicability of the UK Code and its relevance to Sherbet Ltd today.
2. Identify and explain five issues that Sherbet Ltd will need to address to comply with the provisions set out in the Code (should they decide to list). You should explicitly reference the provisions within the report.
3. Four practical recommendations setting out how to achieve compliance and a timeline, with explanation, for when such changes might realistically be implemented.
4. An explanation to the board of the advantages and drawbacks of listing.
5. Explain clearly the rules around audit rotation and how they apply to Sherbet Ltd.
6. Identify and explain any other ethical concerns in the scenario and state how they should be dealt with.
7. Explain the purpose of materiality to Iqbal and why the number changes. Calculate a materiality figure for Sherbet Ltd and briefly justify your chosen benchmark.
8. Write a concise critique of the statement “The role of the auditor should be able to detect fraud and corporate failure” to help the FD understand the auditor’s role in this regard.
Part B – Reflection (Maximum 250 words)
Identify one key skill that you have developed during your studies at university. Reflect on how you have developed this skill over your course.
Consider the relevance of this skill to you in your future career commenting on how it might be developed further in that career. You should indicate what choice of career you are considering in your reflection.
