What are an auditor’s statutory duties?

Question

Any help on this would be much appreciated, thanks.

Answer 1

Principal Duties –
(1) The principal duty of an external auditor is to disclose the status of and express an opinion on whether:
a. all the necessary information and explanations for the audit have been obtained.
b. proper books of accounts have been kept and maintained by the organisation.
c. the accounts dealt with in the report are in agreement with the books of accounts and are in conformity with US GAAP or International Financial Reporting Standards.
d. the financial statements derived from the books of accounts give a “true and fair view” of the organisation.
e. the appropriateness and functionality of an institution’s internal control systems.
(2) Specifically, the duties are:
(a). to perform an audit of the financial statements of the organisation to detect, real or perceived, irregularities and illegal acts in the conduct of the business of the organisation;
(b). communicating to the organisation's board of directors any evidence it may have that irregularities or illegal acts have been committed in the course of the organisation's business, whether or not they may have led to material misstatements in the organisation's accounts or records;
(c). the ability of an institution to operate as an on-going business concern;
(d). warning the board of directors of the orgn. of any other matter which, in the auditor’s opinion, requires rectification or attention by the institution.
(e). to obtain sufficient, relevant and reliable evidence to satisfy themselves of the various matters necessary to form their opinion;
(f). to carefully plan, supervise and review all their work including work performed by subordinate staff;
(g). to ascertain, evaluate and test internal controls before placing audit reliance on them;
(h). to exercise reasonable care and skill in accordance with the current professional standards and practices and to perform the audit in accordance with GAAS or ISA, and
(i). to assess, and in writing comment on the report of the board of directors before the report is tabled at the annual general meeting.

Answer 2

To honestly check the books of a company and validate the results. Making sure all the sums add up as they should.