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
Permanent Audit File The permanent audit file might include, inter alia: a) A copy of the enterprise's statutes and other legal or statutory documents governing the enterpri


types of EDP accounting system and impact of EDP accounting controls

For each of the following independent situations, state whether you agree or disagree, and briefly explain your answer. (a) Materiality is used only at the planning stage of the

Your firm has recently been appointed auditors of the Social Transport Corporation and you are commencing the audit of the wages system. The Corporation has about 2500 employee

IFRS 5 Non-Current Assets IFRS 5 Non-Current Assets Held for Discontinued and Sale Operations The Discontinuing Operation is a component of an enterprise: (a)  Such the

? Decide what areas of the company will be audited and the frequency of the audits. Prepare a yearly audit schedule and distribute. ? Make an audit plan. Decide what other audit r

Reserves - Audit Process Movements in reserves need disclosure in the balance sheet, the loss and profit account, the director's reports or in the notices to the accounts. The

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

IAS 27 - Audit Process IAS 27 applies to the presentation and preparation of consolidated financial statements for a group of entities within the control of a parent. It as w