Your task is to prepare an individual executive summary report that answers the first two questions of the case: Using the proforma supplied, reproduce both company’s financial statements (Profit and Loss Account for the year and year-end Balance Sheet) including a statement of accounting policies used. State your audit opinion – do either set of accounts show a true and fair view? If not, why not? State, with reasons, whether your opinion would differ if these companies were required to follow international accounting standards. In addition (and therefore not included in your executive summary):Come to your Connect session prepared to debate the issue of the lack of accounting standards in Utopia in the Connect session – do you think that preparers of accounts have too much discretion? Consider the various users of accounts and whether any of them would benefit if all accounts had to be prepared using the same accounting policies.
