Responsibility of Auditor
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Responsibility of Auditors
Responsible to Shareholders
The auditor is responsible to the shareholders since they are the member of the company, assigned the auditors to ensure their benefits on the business. Auditor is required to give a report to the shareholders to give the assurance that accounts show a true and fair view and comply with the statutory requirements. Furthermore, the auditors give the assurance that all directors remuneration has been disclosed so that the shareholders received their benefits.
Responsible to proffesion
The independent auditor also has a responsibility to his profession which is the responsibility to comply with the standards. In recognition of the importance of such compliance, the government set up a legislation which is Companies Act 1965, Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards.
Responsible to the Companies
The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are true and fair view, whether caused by error or fraud. Because of the requirement of audit evidence detection of fraud, the auditor is able to obtain reasonable, but not absolute, assurance that material misstatements are detected. Furthermore, the auditors responsibility is to express an opinion on the financial statements. The auditor also responsible to detect the mistake resulting from illegal action which that will influence the truth and fairness of the financial report. However, the auditors responsible for the financial statements that audited is confined to the expression of his or her opinion on them such as unqualified or qualified and so on.