Auditing

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Auditors examine the financial records of a business.

External auditors are independent of the business and are hired by shareholders

Qualified Report: If the financial records have not been keep adeuqately then this sort of report is issued.

Auditors report:

1) Responsibilities of directors and Auditors

2)Basis of opinion (framework of auditing standards within which the audit was conducted)

3)Opinion (qualified or unqualified)

Auditors Role:

1)Examining Accounts

2)verifying whether true and fair or not

3)Examining records

4)Making sure accounting concepts are applied

5)Making sure IAS are adhered to

6)Produce the audit report

7)Verify assets exist and are owned by the company at the amounts stated

Stewardship Function: To produce accounts in such a way that it does not mislead.

Directors Role:

1)Prep Financial statements

2)safeguard business assets

3)select the accounting policies to be applied

4)ensure financial statements are signed by two members of the board of directors