The correct answers are: Auditors should ensure that issues and redemptions of share capital are properly disclosed in the financial statements in accordance with the national legislation and accounting standards; Auditors should check to ensure that the cash received and paid by the company in relation to share issues and redemptions appears in the bank statement and accounting records.

Auditors have no specific duty to report any irregularities in the issue or redemption of share capital to the IASB. Share capital is usually a low risk area in financial statements (unless derivatives or other complex capital instruments are involved) and the amounts involved are normally material. The share capital of the company is always disclosed in the statement of financial position, never in the statement of profit or loss and other comprehensive income.