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Question - Keith recently joined a company as an accountant. The Finance Manager has appointed him to oversee the production of the annual report which includes the audited financial statements, auditor's report, director's report and various unaudited disclosures.
Required -
a) From your knowledge of Behavioral Accounting Research (BAR), explain to Keith two importance of BAR that he should consider and two other ways or formats (apart from text) for presenting information in the annual report, outlining the strengths and weaknesses of each format.
b) Keith is also required to work with the external auditors. The company has used the same auditors for several years. Advise Keith what probabilistic judgement.
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