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Comp Law

The document outlines the rights and duties of auditors, emphasizing their responsibilities to access financial records, maintain confidentiality, and report findings while ensuring accuracy and reliability of financial statements. It details specific rights such as access to records, obtaining information, attending meetings, and receiving remuneration, alongside duties including examining financial statements, maintaining independence, and detecting fraud. Additionally, it describes various types of audit reports, including unqualified, qualified, adverse, and disclaimer of opinion, each reflecting different levels of financial statement accuracy.

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21 views5 pages

Comp Law

The document outlines the rights and duties of auditors, emphasizing their responsibilities to access financial records, maintain confidentiality, and report findings while ensuring accuracy and reliability of financial statements. It details specific rights such as access to records, obtaining information, attending meetings, and receiving remuneration, alongside duties including examining financial statements, maintaining independence, and detecting fraud. Additionally, it describes various types of audit reports, including unqualified, qualified, adverse, and disclaimer of opinion, each reflecting different levels of financial statement accuracy.

Uploaded by

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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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RIGHTS AND DUTIES OF AUDITORS

NAME : ARYAHI SINGH


ROLL NO : BCP/24/140

An auditor has the right to access all financial records and obtain explanations,
along with the duty to examine financial statements, maintain confidentiality,
and report findings. They are also obligated to exercise due care, maintain
independence, and comply with auditing standards. Essentially, an auditor's role is
to ensure the accuracy and reliability of financial statements, protecting
stakeholders' interests

RIGHTS OF AN AUDITORS

Right of Access:
Auditors have the right to access all books of accounts, records, and relevant
information necessary for their duties.
Right to Obtain Information:
Auditors can request necessary information and explanations from company
officials and other parties.

Right to Attend Meetings:


Auditors have the right to attend general meetings and be heard on matters
related to the audit.

Right to Report:
Auditors have the right to report their findings to the company and its members.

Right to Remuneration:
Auditors are entitled to receive reasonable remuneration for their services.
DUTIES OF AN AUDITOR
Duty to Examine Financial Statements: Auditors are responsible for
examining the financial statements to ensure their accuracy and reliability.

Duty to Maintain Confidentiality: Auditors must maintain confidentiality


regarding the information obtained during the audit.

Duty to Report Findings: Auditors must report their findings, including any
material misstatements or irregularities, to the appropriate parties.

Duty to Exercise Due Care: Auditors must exercise due care and diligence in
conducting their audits.

Duty to Maintain Independence: Auditors must maintain independence


from the company to ensure impartiality and objectivity.

Duty to Comply with Auditing Standards: Auditors must comply with all
relevant auditing standards and regulations.

Duty to Detect and Report Fraud: Auditors have a responsibility to detect


and report any instances of fraud or suspected fraud.
AUDIT REPORT
An Audit Report is a formal opinion or disclaimer issued by an auditor as a result of
an audit of an organization's financial statements. It provides stakeholders with an
independent assessment of whether the financial statements present a true and fair
view of the company's financial position in accordance with applicable accounting
standards.

TYPES OF AUDIT REPORTS


UNQUALIFIED OPINION

the auditor believes the financial statements


are fairly presented in all respects, adhering
to generally accepted accounting principles
(GAAP) or other applicable financial
reporting
framework
Qualified Audit Report
Issued when there are some issues found, but they are not widespread or severe.
Example: One account (like inventory) may not comply with standards, but the rest
of the statements are accurate.

Adverse Audit Report


Issued when the financial statements are materially misstated and do not present a
true and fair view.
This is serious and signals major issues in financial reporting.

Disclaimer of Opinion
Issued when the auditor cannot obtain sufficient audit evidence to form an opinion.
It reflects limitations in scope or lack of access to necessary information.

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