2.2 - Items Included Only by Exception

Question 1

What does it mean if certain requirements are reported on ‘by exception’?

Answer 1

Means that the auditor only has to report on them if they have not been met (if there is a problem) - ‘implied opinions’ as auditor doesn’t express explicit opinion but merely implies no problems have been found

Question 2

What is the first item included only by exception?

Answer 2

Adequate accounting records have been kept

Question 3

What is the second item included only by exception?

Answer 3

Returns adequate for the audit have been received from branches not visited

Question 4

What is the third item included only by exception?

Answer 4

The financial statements are in agreement with the accounting records and returns

Question 5

What is the fourth item included only by exception?

Answer 5

All information and explanations have been received as the auditors think necessary and they have had access at all times to the company’s books, accounts and vouchers

Question 6

What is the fifth item included only by exception?

Answer 6

Details of director’s emoluments (Salary) and other benefits have been correctly disclosed in the financial statements

Question 7

What is the sixth item included only by exception?

Answer 7

Particulars of loans and other transactions in favour of directors and others have been correctly disclosed in the financial statements