Outline the statutory provisions with regard to duties of external auditors

Auditing and Assurance Revision Questions and Answers

Auditors‟Duties – Section 161
1 To report to the members on each set of accounts laid before the company in the general meeting, whether in his opinion.
The balance sheet gives a true and fair view of the state affairs of the company as at the balance sheet date.
The profit and loss gives a true and fair view of the profit (or loss) for the period ended on that date.

c) The accounts comply with the requirements of the company‘s Act.
2. Duty to state the following in his report.
a) Whether the auditor has received all the information and explanations which in his opinion was necessary for his audit.
b) Whether he received adequate returns from branches not visited the auditor during the audit.
c) Whether in his opinion proper accounting records have been maintained.
d) Whether the accounts are in agreement with the underlying records.
3. Duty to provide working papers.
An auditor has a duty to assist investigators in to the company‘s affairs providing his working papers, which are summaries of significant matters identified the auditor during the course of the audit.
4. Duty to certify the Profit and Loss account and Balance Sheet in a prospectus. A prospectus is the publication prepared the company that is intending to sell shares to the public.
5. To include in his report any required information about the directors‘ remuneration,which has been omitted from the accounts.
6. To consider if any information in the directors report is inconsistent with the accounts and to report the facts if there are any such instances.



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