Audit Completed Purpose Serve Audit Report Findings Important Role Recommendations Q34264055

Once an audit has been completed, what purpose does it serve?Why are the audit report findings important? What is the role ofrecommendations?

Expert Answer

The purpose of the statutory auditis to provide an independent opinion to the shareholderson the truth and fairness of the financial statements, whether theyhave been properly prepared in accordance with theCompanies Act 1985, and to report by exception to the shareholderson the other requirements of company law.

Before leaving, the auditor also typicallygives the auditee their findings that detail anynonconformities supported by objective evidence. Following this,the lead auditorneeds to compile a detailedaudit report. Clear, concise, and evidence-basedwriting is