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Must audited financial statements be signed by the auditor?
Yes audited financial statements are jointly signed by auditors as well as management of company as an acknowledgment.
What is the responsibility of independent auditors?
The primary objective of independent auditors are rendering opinion report on the financial statement that is the responsibility of client management. The main reason auditors need to be independent are to provide credentional for the client prepared financial statements. Therefore, the users (Bankers, Investers and third party) of the financial statement can have unbiased information about the client financial Statements.
Who is primarily responsible for presenting financial statement information?
Management is initially responsible for preparing financial statements and auditors are responsible for reasonable assurance
What has the author Vernon Turley written?
Vernon Turley has written: 'The Banker's guide to auditors' reports and financial statements' -- subject(s): Auditors' reports, Financial statements
What is an external auditors report?
external auditors focus primarily on controls that affect financial reporting. External auditors have a responsibility to report internal control weaknesses (as well as reportable conditions about internal control)
What is letter of representation and it's purpose and also the audit importance of the letter?
A letter of representation is a formal document provided by management to auditors, confirming the accuracy and completeness of the information presented in the financial statements and disclosing any relevant facts. Its purpose is to communicate management's acknowledgment of its responsibility for the financial statements and to assert that no significant information has been omitted. The letter is important for auditors as it serves as a critical piece of evidence in the audit process, reinforcing the reliability of the financial information and helping to establish accountability. Additionally, it can protect auditors by demonstrating that they relied on management's assertions during the audit.
What has the author R J Mayes written?
R. J. Mayes has written: 'A guide to SAS 600: 'Auditors' reports on financial statements'' 'Reporting to management'
What are the main purpose of a letter of representation?
A letter of representation serves as a formal communication from management to auditors, confirming the accuracy and completeness of the information provided during an audit. It assures auditors that they have received all relevant data and disclosures necessary for forming an opinion on the financial statements. Additionally, it helps establish accountability for the financial reporting process and mitigates the risk of misrepresentation. Overall, this letter enhances the credibility of the financial statements by reinforcing the integrity of management's assertions.
Why auditors need to be independent?
TO ENSURE THE FINANCIAL STATEMENTS GIVE A TRUE AND FAIR VIEW
Who prepares financial statements of a company?
Financial statements of a company are typically prepared by the accounting department, which may include accountants and financial analysts. They gather and analyze financial data to ensure accuracy and compliance with accounting standards. External auditors may also review these statements to provide an independent verification before they are published or filed with regulatory authorities. Ultimately, the company's management is responsible for the integrity of the financial statements.
What is unqualified audited financial statement?
Unqualified audited financial statement is set of financial statements which are audited by external financial auditors and found "True and fair view" of financial statements and clear from any fraud etc.
What is the contribution of internal auditor in the audit of annual financial statements?
Internal auditors play a crucial role in the audit of annual financial statements by providing an independent assessment of the effectiveness of internal controls, risk management, and governance processes. They help identify areas of potential misstatement or fraud, ensuring that financial reporting is accurate and compliant with relevant regulations. Additionally, their findings and recommendations can enhance the overall efficiency and reliability of the financial reporting process, supporting external auditors in their work. Ultimately, their contributions help bolster stakeholder confidence in the integrity of the financial statements.
