Section 267 and 271 of the Companies Act 2016 respectively require for the private and public companies to appoint an auditor for each financial year. An auditor should ensure that the financial statements of the company are prepared in accordance with the relevant accounting standards. An auditor is guided by the auditing standards in order to obtain reasonable assurance that the financial statements are free from material misstatements. Required: i. Explain two (2) benefits of a financial statements audit performed by an approved company auditor. ii. Explain the tem 'reasonable assurance. Explain two (2) importance of auditing standards to an auditor in performing the assigned duties.
Section 267 and 271 of the Companies Act 2016 respectively require for the private and public companies to appoint an auditor for each financial year. An auditor should ensure that the financial statements of the company are prepared in accordance with the relevant accounting standards. An auditor is guided by the auditing standards in order to obtain reasonable assurance that the financial statements are free from material misstatements. Required: i. Explain two (2) benefits of a financial statements audit performed by an approved company auditor. ii. Explain the tem 'reasonable assurance. Explain two (2) importance of auditing standards to an auditor in performing the assigned duties.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process
Section: Chapter Questions
Problem 40RQSC
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Transcribed Image Text:A.
Section 267 and 271 of the Companies Act 2016 respectively require for the private
and public companies to appoint an auditor for each financial year. An auditor should
ensure that the financial statements of the company are prepared in accordance with
the relevant accounting standards. An auditor is guided by the auditing standards in
order to obtain reasonable assurance that the financial statements are free from
material misstatements.
Required:
i.
Explain two (2) benefits of a financial statements audit performed by an
approved company auditor.
i.
Explain the term 'reasonable assurance.
ii.
Explain two (2) importance of auditing standards to an auditor in performing the
assigned duties.
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