True and Fair

True and Fair

True

info in F/s conforms with reality and there are no factual errors.

there are no material inaccuracy.

true also means the f/s must comply with accounting standards.

Fair 

info is clear and unbiased.

plainly reflect the commercial substance of the transactions of the entity rather thean just their legal form.

Objective of an external audit

Objective of an external audit:

Primary obj:
express opinion on whether F/s:

• give true and fair view of the CO's financial position & performance.
• have been properly prepared in accordance with the financial reporting framework.

Secondary obj:
responsibility relating to Fraud(chapter 17)

purpose of statutory audit

The purpose of an audit of financial statements include:
-fulfiling sttutory requirement
-fulfiling other requirement -reduce information risk
-to protect Co itself from the consequences of undetected errors.
- provide shareholders with reliable intelligence for the purpose of enabling them to vote responsibly.