The Role of the External Auditor
•
Public companies and large proprietary
companies must have their annual reports
audited
•
Review and evaluation is carried out by an
independent (not working in the company)
auditor who is a qualified/specialised
accountant
•
The auditor must have access to all the
company’s financial records
•
At same time, the company carries out
internal
audits
and attempts to correct their own
problems and accounting system errors prior to
the external auditor’s evaluation
Auditors must be
Registered Company
Auditors (RCAs)
through the ASIC.
They must comply with the
Corporations Act
and the Auditing Standards set by the
Auditing and Assurance Standards Board
(federal government statutory body)
Purpose of any audit is to offer protection to
interested parties (stakeholders) who cannot
examine the financial records personally
External users must make decisions
regarding their future investment/business
ties with this reporting entity
•
External auditor:
•
underwrites
You've reached the end of your free preview.
Want to read all 7 pages?
- Spring '19
- RRRR
