EXAMINATIONS OF THE CONCEPTS IN THE
DEFINITIONS ARE:
a) Independence: The independence
of the auditor is fundamental to the creditability of the financial statements,
which he certifies. By independence we mean that the auditor is able to do his
work without the influence of his personal bias and or those of the directors and
in some cases the shareholders.
b) Examination; This has to do
with the effort of the auditor in obtaining evidence, which will assist him in
forming an opinion of financial statement.
c) Opinion: The auditor's
opinion is usually expressed by saying whether the account shows a true and
fair or not, be it unqualified or a qualified audit report. The expression
"true and fair" to the professional accountant in relation to any
financial statement implies that it accurately conveys in all material respects
the information the directors desires to pass on the shareholders.
d) Financial statement: This refers to as
the profit and loss balance sheet or income and expenditure and statements of
assets and liabilities together with notes relating thereto and more recently
sources and application of funds statement.
e) Appointment of auditor: For a
person to be duly appointed as an auditor he needs to be appointed in line with
the provisions of the article of association and with CAMA 1991.
f) Terms of appointment: The terms of the
auditor's appointment may be the party appointing him. -However, for the
statutory audit the implied term of the appointment is the expression of audit
opinion. His duty in this regard is by the law as the client who appoints him
cannot restrict it.
No comments:
Post a Comment