Audit of Limited Companies and Audit Report Company Auditors — appointment, qualification, powers, duties and liabilities, professional ethics of an auditor; Audit of limited companies - Banking companies, Insurance companies; Audit of co-operative societies, audit of educational institutions, Recent amendments on the appointment of auditors. Audit Report - Types of audit report, form, and contents of audit report, the distinction between report and certificate, essentials of a good report

1. Audit of
Limited
Companies &
Audit Report

2. Overview
Appointment Qualification Powers Duties Liabilities
Professional
ethics of an
auditor
Audit of
limited
companies
Audit of co-
operative
societies
Audit of
educational
institutions
Recent
amendments
on the
appointment
of auditors
Audit Report
The distinction
between report
and certificate
Essentials of a
good report

3. Appointment
° Appointment by
Shareholders
° Rotation

4. Qualification
1. Professional Certification: certified
public accountants (CPAs) or chartered
accountants (CAs).
2. They need to be members of
recognized accounting bodies or
regulatory authorities.
3. Knowledge and Experience

5. Powers
ACCESS TO
INFORMATION
RIGHT TO OBTAIN
EXPLANATIONS
ACCESS TO
MANAGEMENT,
EMPLOYEES, AND
THIRD PARTIES

6. Do the right
thing, even when
no one is looking

7. Liabilities
Professional Liability
Professionally Liable For Any Negligence, Errors,
Or Omissions That Result In Financial Loss To The
Company Or Its Stakeholders
Legal Liability
May face legal liabilities for failing to detect
fraud or material misstatements in the
financial statements

8. Duties Expressing an Opinion
Compliance with Standards
Detection of Errors and Fraud

9. Professional ethics
of an auditor
INDEPENDENCE
AND OBJECTIVITY
INTEGRITY AND
HONESTY
PROFESSIONAL
COMPETENCE AND
DUE CARE
CONFIDENTIALITY

10. Professional ethics
of an auditor
COMPLIANCE WITH
LAWS AND
STANDARDS
COMMUNICATION
AND TRANSPARENCY
CONTINUING
PROFESSIONAL
DEVELOPMENT
AVOIDING
CONFLICTS OF
INTEREST

11. Audit of limited companies
Banking companies
Audit of
educational institutions
Insurance companies
Audit of
co-operative societies

12. Banking
companies
58%
23%
1…
9%
Audit of Treasury Operations
Compliance with Capital
Adequacy Requirements

13. Insurance companies
Verification of Policy
Liabilities
Compliance with
Solvency
Requirements
Investment Portfolio
Audit
Actuarial Review
Verification of
Premium Revenue
Consideration of
Uninsured Risks

14. Audit of co-
operative societies
Understanding Co-operative Principles
Verification of Membership
Compliance with Co-operative Laws and
Bylaws
Review of Co-operative Agreements

15. Audit Of
Educational
Institutions
Verification of
Revenue and
Expenses
Student
Enrolment and
Fee Collection
Assessment of
Internal Controls
Verification of
Assets and
Liabilities
Compliance with
Regulatory
Requirements
Assessment of
Donations and
Endowments

16. Audit Of
Educational
Institutions
Review of
Contracts and
Agreements
Reporting to
Management and
Governing Bodies
Special
Considerations
for Non-Profit
Institutions

17. Recent amendments on the appointment of auditors
Rotation of Auditors
Tendering and Competitive Bidding
Shareholder Approval
Independence Requirements
Auditor Qualifications
Mandatory Auditor Rotation
Voluntary Resignation or Removal

18. Types Of
Audit Report
1. Unqualified Opinion
2. Qualified Opinion
3. Adverse Opinion
4. Disclaimer of Opinion

19. Form, And Contents
Of Audit Report
1.Report Title
2.Addressee
3. Introductory
Paragraph
4. Auditor's Opinion
5. Basis for Opinion
6. Emphasis of
Matter
7. Other Reporting
Responsibilities
8.Auditor's Signature
and Date

20. Distinction
Between Report
And Certificate
1.Nature: A report is a formal written communication prepared
by an individual or a team to convey information, findings,
opinions, or recommendations on a specific matter or subject.
2.Purpose: Reports are used to provide detailed information,
analysis, and conclusions on a particular topic. They aim to
inform and educate the readers about the subject matter.
3.Content: Reports typically contain an introduction,
methodology, analysis of data or information, findings,
conclusions, and recommendations (if applicable). They are
structured and organized logically to present the information
effectively.
4.Assurance: Reports may or may not provide assurance on
the accuracy or reliability of the information presented. If
assurance is provided, it is usually limited to the procedures
performed by the individual or team preparing the report.
5.Examples: Examples of reports include audit reports,
research reports, project reports, feasibility studies, and
investigative reports.

21. Distinction Between
Report And
Certificate
1.Nature: A certificate is a formal document issued by an
authorized individual or authority to certify the accuracy or
truthfulness of certain facts, statements, or conditions.
2.Purpose: Certificates are used to provide a high level of
assurance and confirmation regarding specific facts or
conditions. They aim to certify the authenticity or compliance of
certain information or events.
3.Content: Certificates are typically concise and
straightforward. They state specific information, attestations, or
compliance with certain standards or requirements.
4.Assurance: Certificates provide a higher level of assurance
compared to reports. They imply that the certifying authority
has conducted appropriate verification or examination to
confirm the accuracy or compliance of the stated information.
5.Examples: Examples of certificates include audit certificates,
compliance certificates, marriage certificates, birth certificates,
and ISO certification.

22. Essentials Of
A Good
Report

23. Essentials Of
A Good
Report
Clear Opinion and Conclusion: The audit
report should provide a clear and unambiguous
opinion on the financial statements. It should
state whether the financial statements present a
true and fair view in accordance with the
applicable accounting standards.
Identification of Financial Statements: The
report should specify the financial statements
audited, such as the balance sheet, income
statement, statement of cash flows, and
accompanying notes.
Compliance with Auditing Standards: The
auditor should explicitly state that the audit was
conducted in accordance with generally accepted
auditing standards (GAAS) or International
Standards on Auditing (ISAs).

24. Essentials Of
A Good
Report
Scope of the Audit: Clearly define the scope of
the audit, including the period covered, the extent
of the examination, and any limitations
encountered during the audit.
Reference to Internal Control: If applicable,
mention the auditor's assessment of the
effectiveness of the internal control system and
any material weaknesses identified.
Emphasis of Matter (if applicable): Highlight
any matters that, although appropriately
accounted for or disclosed, are relevant to the
understanding of the financial statements. These
matters are not qualified opinions but draw the
reader's attention to specific aspects.

25. Essentials Of
A Good
Report
Key Audit Matters (KAMs): For listed
companies or entities where required, disclose the
key audit matters—specific areas that required
significant auditor attention during the audit.
Independence Statement: Include a statement
affirming the auditor's independence and
objectivity during the audit process.
Basis for Opinion: Provide a summary of the
audit procedures performed, including the testing
of significant account balances and transactions,
evaluation of accounting estimates, and other
relevant audit evidence.

26. Essentials Of
A Good
Report
Timeliness: Issue the audit report in a timely
manner to provide relevant and up-to-date
information to stakeholders.
Distribution: Address the report to the
appropriate parties, such as the company's
shareholders, the board of directors, or relevant
regulatory authorities.
Signature and Date: The report should be
signed by the lead auditor, indicating the date of
the report.

27. All the Best