Introduction
The auditor’ report is the final product of the audit work. It is usually very short but very important to the enterprise concerned. The auditors’ reports should not by any chance be under – estimated. Most auditors’ reports are short statement just expressing the opinion of the auditor the truth and fairness view of the accounts. The auditors’ report is supposed to show whether the financial statements comply with the necessary accounting standards and the necessary legislation and regulations.
The matters to be expressed in the auditors are expressly stated in the Seventh Schedule of the companies Act Cap 486 and also in the auditing guidelines. The sixth schedule is reproduced below:
SEVENTH SCHEDULE (s. 162)
Matters to be expressly Stated in Auditors’ Report
1. Whether they have obtained all the information and explanations which to the best of their knowledge and belief were necessary for the purposes of their audit
2. Whether, in their opinion, proper books of account have been kept by the company, so far as appears from their examination of those books, and proper returns adequate for the purposes of their audit have been received from branches not visited by them.
3.
(1) Whether the company’s balance sheet and (unless it is framed as a consolidated profit and loss account) profit and loss account dealt with by the report are in agreement with the books of account and returns.
(2) Whether, in their opinion and to the best of their information and according to the explanations given them, the said accounts give the information required by this Act in the manner so required and give a true and fair view –
- in the case of the balance sheet, of the state of the company’s affairs as at the end of its financial year; and
- in the case of the profit and loss account, of the profit or loss for its financial year, or, as the case may be, give a true and fair view thereof subject to the non-disclosure of any matters (to be indicated in the report) which by virtue of Part III of the Sixth Schedule are not required to be disclosed.
4. In the case of a holding company submitting group accounts whether in their opinion, the group accounts have been properly prepared in accordance with the provisions of this Act so as to give a true and fair view of the state of affairs and profit or loss of the company and its subsidiaries dealt with thereby, so far as concerns members of the company, or, as the case may be, so as to give a true and fair view thereof subject to the nondisclosure of any matters (to be indicated in the report) which by virtue of Part III of the Sixth Schedule are not required to be disclosed.
