External Audit

External Audit

1. Duties of Auditor

   • Consider if the FS show a true and fair view of business activities
     • Check the FS have been prepared in accordance with relevant legislation
       • Ensure proper records are kept
         • Adequate information provided
           • FS must agree with accounting records
             • Annual report is consistent with FS

2. The independent examination of and expression of an opinion on the FS of an entity

   • ISA 700 requires the auditor to give a clear opinion on the FS as a whole

3. Rights of an Auditor

   • Access to company books, records and documents
     • Receive notice of and attend board meetings
       • To speak at meetings
         • Obtain information and explanations from company officers when required

4. 4 Types of opinion

   • Unmodified Opinion
     • Concludes that FS give a fair and balanced view
   • Adverse Opinion
     • FS do not show a true and fair view
   • Disclaimer of Opinion
     • Unable to obtain sufficient evidence to be able to give an opinion as circumstances could be material and pervasive
   • Qualified Opinion
     • FS show a true and fair view with the exception of....... which is material and pervasive