Examination Of The Financial Statement Of Companies Essay
An Audit is the examination of the financial statement of companies. A statutory audit means an audit of annual and consolidated accounts as required by law. The main purpose of the audit is to certify the accounts of the firms. The financial statements include Balance Sheet, Income Statement, a statement of change in Equity and cash flow Statement. While performing the audit, auditors must follow the auditing standards. After completing the audit, an audit report is prepared. All the registered or listed and limited liabilities companies are bound to prepare the audit report (PricewaterhouseCoopers 2016).
The audit provides confidence, reduce risk and uncertainty and add value. For the economic decisions, people rely on financial statements(International Compliance Training 2015).
Assurance engagement in audit enables the practitioner to express its opinion. For the engagement following points should be followed:
Three parties relationship
2. Responsible Party
1. Subject Matters
3. Appropriate Evidence
4. Opinion Expression
Audit Committee of JJ Chartered Accountants:
Being a partner of the JJ Chartered Accountants the roles and functions of an Audit Committee have been identified. Boards of Directors and their committees are responsible for the overseeing the business operations. Board role is to monitor the activities rather than execution. Responsibilities usually include: