The Companies’ Act Cap 486 and the Auditing Guideline give the auditor some specific duty regarding the content of the auditors’ report. If certain information is not given in accounts and the financial statements, then this information need to be given in the report. Some of this information includes
- Particulars of directors’ emoluments including pensions etc
- Particulars of loans to the officers of the business
- Particulars of emoluments which the directors waived the right to receive
- Particulars of contracts in which the directors have interest
As you may noticed the information is only touching on the directors. The auditors’ report has basically five sections as shown below
Section One – The Heading.
This section contains to whom the report is made. In starts with the words ‘Auditors Report to …..
Section Two – What the Auditors have done
This section contains the work the auditors have done and starts with the words “we have audited the financial statement on page … to page …
Section Three – The Opinion
This contains the opinion of the whether the books of accounts have maintained properly and whether the financial statements give a true and a fair view of the state of affairs of the business for the period under consideration. The section starts with the words “in our opinion the financial statements have been prepared under historical cost convention and give a true and fair view of the company’s state of affair for the year ended 31 December 2011
Section Four – the name of the auditor
The section contains the name of the that performed the audit work Section Five – Date the Auditors’ Report was signed This section has the date the report was duly signed