Statutory and non-statutory audit reports, Auditing

Explain the purpose and content of a statutory audit report. Explain what recommendations you would make to the case study business

Statuary and Non- Statuary audits

In most countries, audits are required under national statute in the case of large no. of undertakings, including the followings

 Undertakings                                                                             Principal Legislations

Limited Companies                                          The companies' ordinance 1984

Corporative societies                                       the societies Act 1927

Banking Companies                                         Banking Companies ordinance 1962

Modarbas                                                         The modarba Co. and Modarba flotation

                                                                        And control ordinance

Other organizations and entities requiring a statutory audit may include charities investment business, trade unions etc

Non-Statuary audits are performed by independent auditors because owner, proprietors

Members, trustees, professional- Governing bodies or other interested parties want them rather than because the law requires them auditors may also give an audit opinion on statements other that annual accounts including

  1. Summaries of sales in support of statement of royalties
  2. Statement of expenditure in supports of applications for govt. grant.
  3. Circulation figures of a newspaper on magazine

 

In all such audits the auditors must take into account any regulations contained in the internal rules or constitution of the undertaking. E.g. of regulation which the auditors would need to refer to in such assignments would include.

  1. Rules of clubs, societies and charities
  2. Partnership agreements

In statuary audit auditor give two types of audit opinion in audit report.

Qualified Opinion

In which auditor is successful in finding evidences that supported that financial statements are materially miss tatted in this case auditor qualifies report.

 Unqualified Opinion

In this case auditor does not qualify report because he did not find any evidence and financial statements are fairly represented.

In this case study business auditor will give an unqualified opinion but he will classified weakness of interim of control and suggest the remedies in management latter. David and Linda will take notice of it if when auditor's opinion is going to be

1-  Affected in case recommendations are not followed.

2-  If recommendation are taken and benefits are higher that cost of it.

Auditor will give unqualified opinion; little mistakes will be cancelled without management and auditors dispute.

Posted Date: 3/14/2013 2:42:57 AM | Location : United States







Related Discussions:- Statutory and non-statutory audit reports, Assignment Help, Ask Question on Statutory and non-statutory audit reports, Get Answer, Expert's Help, Statutory and non-statutory audit reports Discussions

Write discussion on Statutory and non-statutory audit reports
Your posts are moderated
Related Questions
1. On 5 August 2012, the financial controller informed you that the board has recently received a letter from the assistant general manager, Mr. Tan. The letter contains a confessi

Companies Modes of Operation Some companies (especially small ones) operate without any overtly expressed plan and simply carry out the business as always, responding to market

Auditors Procedures - Audit Process The relevant authority on post balance sheet events is ISA. The preparation of loss and profit account and balance sheet will forever inclu

Trademarks and Patent Trademarks and then written off over their useful lives and patents may be capitalized along with any renewal fees being charged to revenue. Whether a tr

The first work you do in IDEA IS SECTION 2.5. The accounts receivable folder that you are instructed to select on page 25 is a folder that you are to create previously on page 23.

Assertions about account Assertions about account balances at the duration end: a) Existence -assets, equity and liabilities interests exist. b) Obligations and Ri

Limitation of Audit Evidence The quantity and quality of evidence is constrained through the following factors as: Absolute proof is not possible; Some assert

Managements interest in the accounting system Management needs complete and accurate books of accounts because: There is no other way the business can be controlled; Rec


Share Capital - Audit Process Share capital is a special type of liability and when it has been issued during the year then verification procedures are as follows: 1. Confirm