Question 4
ICAN
•
2026
•
ADVANCED AUDIT ASSURANCE AND FORENSICS
•
mixed
Case Stimulus
Omuoru Bottling Company Limited has been producing carbonated water and other soft drinks since 2019. The company produces high-quality drinks and markets the products aggressively to make enough profit to sustain the business and meet the needs of various stakeholders. The company has about three hundred staff and an impressive market share. The products have various brands and flavours including carbonated water, juice, banana, pineapple and other carbonated drinks. The annual sales of the company have been within the range of N380million and N790million. The profit after tax moved from N150million in 2019 to N367million in 2024. The company pays tax and other levies as and when due. The details of the contributions made by the company to the community during the year 2024 are as follows: The directors of the company have not been making a disclosure of the various corporate social responsibilities in the financial statements. The Managing Director has intimated your firm of the threat of the pressure group during the pre-audit meeting for the current audit due to non-discussion of the company’s special responsibility in the financial statements. As a result of the foregoing, your firm has decided to intimate your firm’s expert to conduct sustainability assurance for reporting in the financial statements.
Additional Information
{
"nature": "Corporate social responsibility",
"amount": 48000
}
{
"nature": "Corporate social responsibility",
"amount": 10000
}
{
"nature": "Sponsorship",
"amount": 25000
}
{
"nature": "Corporate social responsibility",
"amount": 16000
}
{
"nature": "Corporate social responsibility",
"amount": 12000
}
{
"nature": "Corporate social responsibility",
"amount": 8000
}
{
"nature": "Corporate social responsibility",
"amount": 13000
}
{
"nature": "Sponsorship",
"amount": 13000
}
Requirements
(
a
)
Evaluate the issues to be considered before accepting sustainability assurance, including ethical and professional considerations.
(
b
)
Discuss the process for sustainability reporting and assurance.
(
c
)
Justify the need for sustainability reporting and assurance.
(
d
)
Discuss the ethical concerns on the use of Artificial Intelligence (AI) in sustainability reporting.
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About This Question
This is
Ican
2026
Advanced Audit Assurance And Forensics
Question 4.
It is one of the
mixed
questions from the
2026
Ican
Advanced Audit Assurance And Forensics
examination.