Section 267 and 271 of the Companies Act 2016 respectively require for the private and public companies to appoint an auditor for each financial year. An auditor should ensure that the financial statements of the company are prepared in accordance with the relevant accounting standards. An auditor is guided by the auditing standards in order to obtain reasonable assurance that the financial statements are free from material misstatements. Required: i. Explain two (2) benefits of a financial statements audit performed by an approved company auditor. ii. Explain the tem 'reasonable assurance. Explain two (2) importance of auditing standards to an auditor in performing the assigned duties.

Section 267 and 271 of the Companies Act 2016 respectively require for the private and public companies to appoint an auditor for each financial year. An auditor should ensure that the financial statements of the company are prepared in accordance with the relevant accounting standards. An auditor is guided by the auditing standards in order to obtain reasonable assurance that the financial statements are free from material misstatements. Required: i. Explain two (2) benefits of a financial statements audit performed by an approved company auditor. ii. Explain the tem 'reasonable assurance. Explain two (2) importance of auditing standards to an auditor in performing the assigned duties.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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