4510 - 2

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4510 - 2
2015-10-17 13:50:35

4510 - 2
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  1. The function of financial reporting is to…; It is …for auditors to express an opinion on whether client’s financial statements are presented in a true and fair view

    • provide financial statements to the existing and potential investors and outside decision-makers for whom it may be costly or impractical or unable to access the financial;
    • the statutory duty

  2. As required by the Companies Ordinance, the auditors of a company have to: (3pts)

    • Prepare a report to the members (shareholders) on the financial statements examined by them
    • Include in the report auditors’ opinion on whether the financial statements are true and fair
    • Carry out such investigations as it will enable them to form an opinion as to the following matters:
    • - Whether proper books of account have been kept by the company
    • - Whether the company’s financial statements are in agreement with the books of account

  3. As required by the Code of Ethics, the auditors should

    • maintain independence from their client
    • duty to act in a professional manner
    • Provide a reasonable level (cannot be negligent) of care while performing the audit function

  4. As required by the Standards on Auditing, the auditors should:

    Provide a reasonable assurance on whether the financial statements are free from material misstatements

  5. Responsibilities of External Auditors
    Be independent of the audit client and comply with ethical requirements

    Plan and perform an audit with an attitude of professional skepticism and exercise appropriate professional judgment

    Carry out audit procedures in accordance with auditing standards and relevant legislation

    Obtain sufficient appropriate audit evidence to form audit opinion