AUDIT REPORT (INTRODUCTION)

INTRODUCTION  (AUDIT REPORT)

• Management is responsible for the preparation of the financial statements. Management also accepts responsibility for necessary internal controls to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 
• The purpose of an audit is to enhance the degree of confidence of intended users of the financial statement.
•  The aforesaid purpose is achieved by the expression of an independent reporting by the auditor as to whether the financial statements exhibit a true and fair view of the affairs of the entity.
• Thus, an Audit report is an opinion drawn on the entity’s financial statements to make sure that the records are true and fair representation of the transactions they claim to represent.
•  This involves considering whether the financial statements have been prepared in accordance with an acceptable financial reporting framework applicable to the entity under audit. It is also necessary to consider whether the financial statements comply with the relevant statutory requirements.
•  The main users of audit report are shareholders, members and all other stakeholders of the company.