Question

Examine the duties of the management of a company and any company's auditors with regard to any company's financial statement.

Answer 1

DUTIES OF MANAGEMENT OF A COMPANY:

The directors are responsible for preparing the financial statements in accordance with applicable law and regulations. The directors have elected to prepare financial statements for the group in accordance with International financial reporting standards as adopted by the EU (IFRS) and have also elected to prepare financial statements for the company in accordance with UK accounting standards. The Directors are also required to:

Properly select and apply accounting policies,

Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information,

Provide additional disclosures, when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance,

Make an assessment of the company's ability to continue as a going concern.

DUTIES OF COMPANY AUDITOR:

As perpSection 143 duties of company auditor are:

Duty of Auditor to inquire on certain matters, namely Loans & advances, Book entries, Sale of Securities, Loans & Advances, Personal Expenses, Share Alloted for Cash and Balance Sheet postion;

Duty to Audit report;

Duty to state the reason for qualification or negative report;

Duty with reference to branch and branch auditor;

Duty to comply with Auditing standards;

Duty to report on frauds;

Duty to report on any other matter specified by CG;

Duty to sign the Audit Report.