0
The concept of the 'true and fair view' remained a cornerstone of financial reporting and auditing in the UK; that there had been 'no substantive change in the objectives of an audit and the nature of auditors' responsibilities'; and that the need for professional judgement 'remained central to the work of preparers of accounts and auditors in the UK'.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
What is the job of external auditor?
Job of external auditor is to examine the books of accounts of company and issue a clearance letter regarding the true and fair nature of financial statement.
Why auditors need to be independent?
TO ENSURE THE FINANCIAL STATEMENTS GIVE A TRUE AND FAIR VIEW
What do auditors do?
An auditor specialises in examining and verifying a set of financial statements by reference to evidence (physical, oral, documentary, etc). When he/she are satisfied that the financial statements are true and fair, the auditor will issue a clean auditors' report; on the other hand, if the financial statements or the company are detected to show problems (e.g. show signs of fraudulent activity), the auditor's report will also make this clear.
What is the purpose of preparing balance sheet?
main objective is to know true and fair view of state of afire of company
Disadvantages of auditing?
DISADVANTAGES 1. Frauds by management Auditing fails to check planned frauds. The management can play tricks to manipulate the accounts in order to conceal their inefficiencies. The audited accounts could not show the true view. 2. Wrong certificate Auditing is based on many certificates taken from management and other persons. Auditing may fail to provide the desired results. When certificates provides wrong information. 3. Misleading clarification Auditing fails to disclose correct information. The management may not provide correct clarification. The auditor is bound to present his report even of the clarification is not true. 4. No true picture The auditing does not present true picture. Auditing fails to disclose true picture when figures have been manipulated. 5. No correct view Auditing fails to present correct view. There are limitations of accounting so figures are not facts. These figures are based on opinion. Thus auditing is unable to disclose correct view. 6. No suggestion Auditing is not concerned with the management policies. The auditor cannot guide management for better use of capital. He is unable to suggest what should have been done. 7. Absence of honesty Honesty and independence are highly essential traits. The auditor must certify what is true. The absence of honesty and independence means failure of audit purpose. 8. Bias of auditor The auditing fails to present fair view due to bias of an auditor. It is the quality of an auditor that he should be independent. The bias auditing fails to help many people. 9. High cost The audit work is completed without cost. The cost of audit should not exceed of errors and frauds. Auditing fails to serve million of business entities. 10. Past action Auditing is nothing more than checking of past activities. It is not concerned with present or future. The audit fees increase the cost of business. Such cost does not help to improve market standing of enterprises.
What is the job of external auditor?
Job of external auditor is to examine the books of accounts of company and issue a clearance letter regarding the true and fair nature of financial statement.
What is the role of an auditor in terms of the financial statement?
External Auditor has the role to materially evaluate the financial statements and provide his opinion that 'Does financial statements reflects true and fair activities of business' or not.
Why an independent auditor reports on financial statements?
to assure the shareholders that the company's accounts gives the true n fair picture of the company's affairs...
What is the duty of an auditor?
Duties of internal auditor is to overview the internal control system in company to ensure sound internal control systems. Duty of external auditor is to examin the books of accounts and give verdict about true and fair nature of books of accounts.
Why auditors need to be independent?
TO ENSURE THE FINANCIAL STATEMENTS GIVE A TRUE AND FAIR VIEW
Why an independent auditor is asked to express an opinion on the fair presentation of financial statements?
An independent auditor is asked to express an opinion on the fair presentation of financial statements because a company may not be objective with respect to its own financial statements.
What do auditors do?
An auditor specialises in examining and verifying a set of financial statements by reference to evidence (physical, oral, documentary, etc). When he/she are satisfied that the financial statements are true and fair, the auditor will issue a clean auditors' report; on the other hand, if the financial statements or the company are detected to show problems (e.g. show signs of fraudulent activity), the auditor's report will also make this clear.
What is the purpose of preparing balance sheet?
main objective is to know true and fair view of state of afire of company
Is The Policy Auditor Agent is only supported on Windows platforms?
True
Is the Policy Auditor Agent only supported on Windows platforms?
True
What is auditer report?
An audit report is an opinion that is written by an auditor to show if the financial statements are correct. The auditor will indicate if they state the true financial position of the company.
Duties of auditors?
The duties of an auditor may vary depending on the company but there are some basic duties that include collecting and analyzing data to determine the financial status. Other duties include preparing financial reports, inspecting company books, and evaluating financial systems.
