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Auditing SA 240
Auditing
I'm confused in understanding that statement
Answers (2)
An auditor is appointed by the shareholders in case of a limited company and he is expected to check if their interests are taken care by management on their behalf like a watchdog looks after the house. The auditor is not expected to audit with the intent to verify and detect frauds / faults of the company a bloodhound ( a large dog that has a very good ability to smell things, and is used for hunting animals)
Sudha Reddy
An auditor is appointed by the shareholders in case of a limited company and he is expected to check if their interests are taken care by management on their behalf like a watchdog looks after the house. The auditor is not expected to audit with the intent to verify and detect frauds / faults of the company a bloodhound ( a large dog that has a very good ability to smell things, and is used for hunting animals)
it means auditor is not investigator as he does not get powers.....he will just check already made financial statements by management...whether appropriate accounting policies followed or accounting estimate are reasonable...and after this all obtain sufficient & appropriate audit evidence...on the basis of this ...express his opinion and REPORT it to the shareholders who appointed him.
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