Accounts: Report of the Independent Auditors
What does the Report of the Independent Auditors consist of?
This is a narrative section, signed by the auditors, outlining the following:
- The responsibilities of the directors and auditors;
- The basis of the audit opinion; and
- The audit opinion.
How can I use the information contained in the Report of the Independent Auditors?
This section is often overlooked, as the wording is usually formulaic. However, if the auditor does have concerns about the validity of the accounts this is where it will be stated.
Why should I check the information provided in the Report of the Independent Auditors?
This section should always be checked as it explains how the auditor reached the basis of his conclusion. If he is not satisfied with the results of his audit, i.e. the accounts do not fairly and accurately reflect the business trading, then this must be recorded here. It is not unknown, for example, for an auditor to uncover internal fraud and state this in this section.