Auditor, Auditing

Assignment Help:

Auditor

Further point to note is which modern companies can be exclusively large along with multi-national activities.  So preparing accounts for that a group becomes a widely complex operation which could include bringing together and summarizing the accounts of subsidiaries along with differing accounting systems.  Each account is needed to conform to very complex and detailed requirements of the Companies Act (CAP 486) and to the used of the many International Financial Reporting Standards (IFRSs) also. These points taking into consideration hence, it becomes essential which to give credibility to the accounts an independent qualified expert be appointed to objectively inspects the accounts and then report his findings to each interested parties, primarily the shareholders as needed by the Companies Act, but also to relevant regulatory authorities and other providers of funds.

Therefore the providers of funds are divorced from the control of those funds it would seem logical which the controllers should on a usual basis provide a report to the providers of the funds on changes in the claims resources.  This report of the directors and controllers according to Kenya Companies Act should be into the form of annual accounts that consist of the profit and loss account and balance sheet.  The accounting profession has extended the accounts through requiring which a Cash Flow Statement be appended to the accounts as part of the accounts also.

Such independent expert is called the auditor.  The report of his investigations an audit report and his investigations constitute.  Resolving the problems of credibility apart from an audit is necessary to ensure which the utilization of the Companies Act and the International Financial Reporting Standards have been complied along with.  The accounts are referred to like financial statements.


Related Discussions:- Auditor

Auditing question, As an auditor, how would you react to the following situ...

As an auditor, how would you react to the following situation? The company produced photocopies of fixed deposit receipts as the original receipts were kept in the iron safe of the

Selection of a sample - audit process, Selection of a Sample - Audit Proces...

Selection of a Sample - Audit Process The following accounts must be involved in debtor's circularisation: 1) Large balances since they are large and the moreover you can sub

Mrs, what are the benefit of audit and its limitations

what are the benefit of audit and its limitations

Strategic audit, A. Board of Directors Best Buy's Board is elected by th...

A. Board of Directors Best Buy's Board is elected by the shareholders to oversee the business and affairs of the company.  The board counsels, advises and oversees management wi

Types of audits, Types of audits So far we have tended to think in term...

Types of audits So far we have tended to think in terms of the audit of limited companies, and indeed, the emphasis throughout this text will be on such companies incorporated

Audit risk, AUDIT RISK As we have seen many parties rely on the audit o...

AUDIT RISK As we have seen many parties rely on the audit opinion to make decisions, and therefore it is now a well established fact that if the auditor gives an audit opinion

Audit evidence, discuss the factors affecting the sufficiency of audit evid...

discuss the factors affecting the sufficiency of audit evidence

Meaning of true in auditing, Meaning of True in Auditing Meaning of 't...

Meaning of True in Auditing Meaning of 'true and fair'/present fairly' Truth in accounting is quite different form scientific truth.  Accounting does without a deal along w

Pension funds - specialized audit situation, Pension Funds - Specialized Au...

Pension Funds - Specialized Audit Situation Pension funds are set up through companies or another organization: (a)  To retired employees to administer the pension payable

Framework of critical thinking principles, Framework of critical thinking p...

Framework of critical thinking principles (a) Identify the key steps in this framework/ concept. (b) Briefly explain each of the key steps, in your own words. Ans: Thin

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd