important points on Statutory Audits

[rajni]

Example regulatory environment
 Laws and regulations
 Code of ethics of the professional body the auditor is a member of
 International regulations
 Accounting and auditing standards

Reasons to regulate auditors
 Protect public interest
 Maintain dignity of the auditing profession
 Ensure auditor’s independence and competence
 Bring in uniformity

Audit report
Unmodified report
 Financial statements are true and fair

Modified report
 Auditor modifies expression true and fair etc.

Matters that do affect the auditor’s opinion
 Qualified opinion
 Disclaimer of opinion
 Adverse opinion

Limitations of statutory audits
 Impossible to test all transactions
 Weaknesses in internal control system
 Audit evidence is persuasive rather than conclusive
 Audit does not provide up-to-date position

[oxymoron1983]

Thank you so much! that was helpful.
good summary

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