Which report must also accompany the director's report besides the auditor's report?

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The correct choice is the strategic report, which is required to accompany the director's report in various jurisdictions, particularly in the UK under the Companies Act 2006. The strategic report provides an overview of the company's strategy, objectives, and performance. It highlights the business model, the principal risks and uncertainties facing the business, and how the directors intend to manage these risks.

Including the strategic report alongside the director's report allows shareholders and stakeholders to gain a comprehensive understanding of how the company is navigating its market environment and aligning its objectives with overall corporate governance. It complements the auditor’s report, which provides an independent opinion on whether the financial statements present a true and fair view of the company's financial position.

In contrast, the other options such as profitability report, market analysis report, and compliance report do not fulfill this statutory requirement. While they may provide valuable insights into a company's operations or market conditions, they are not specifically mandated to accompany the director's report like the strategic report is. This legal requirement ensures transparency and accountability in corporate reporting.

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