Question 3b ii
As part of your review of Myron plc, you have also been presented with an extract from the draft chairman’s statement which will be published in the annual report alongside the financial statements for the year.
Extract from chairman’s statement
The company’s results for the year are extremely positive. Our year on year revenue growth is 5·9% and our profit growth is even stronger at 13·4%. All our revenue streams have performed well, especially the scientific publishing division, and we are looking forward to exciting and sustained growth levels again next year.
As you can see from our auditor’s report, the auditors agree that our results are strong and a sound basis for taking the company to an even greater place next year.
We have also made significant progress with our social and environmental aims of reducing our carbon footprint and encouraging re-use and recycling across our divisions. We are proud to announce that we have now moved all our printed products to recycled paper.
To help with your review of the information, you also have the following analysis of the results for the year.
| Year ended 31 March 20X5 | Year ended 31 March 20X4 | |||||
|---|---|---|---|---|---|---|
| Other divisions | Scientific publishing division | Total | Other divisions | Scientific publishing division | Total | |
| £ million | £ million | £ million | £ million | £ million | £ million | |
| Revenue | 95 | 13 | 108 | 93 | 9 | 102 |
| Profit before tax | 7·9 | 1·4 | 9·3 | 7·5 | 0·7 | 8·2 |
A file note from the audit supervisor states that at least three of the publications Myron plc sells are not prepared on recycled paper.
Required:
(ii) Assuming no changes are made to the chairman’s statement, evaluate the implications for the completion of the audit and the auditor’s report. (5 marks)