Did you ask your auditors? From a pure audit standpoint the financial statements don't have to be signed by anyone - especially as the production of financial statements is NOT part of the audit process. It is the company memoranda and local law that governs this.biztreesg wrote:Anyone knew what is the request from auditing ? Any FRS requirement ?
I disagree. Directors must sign audited financial statements, stating that there are no material misstatements of fact. I've always had to sign my audited statements.carteki wrote:Did you ask your auditors? From a pure audit standpoint the financial statements don't have to be signed by anyone - especially as the production of financial statements is NOT part of the audit process. It is the company memoranda and local law that governs this.biztreesg wrote:Anyone knew what is the request from auditing ? Any FRS requirement ?
Strong Eagle wrote:I disagree. Directors must sign audited financial statements, stating that there are no material misstatements of fact. I've always had to sign my audited statements.carteki wrote:Did you ask your auditors? From a pure audit standpoint the financial statements don't have to be signed by anyone - especially as the production of financial statements is NOT part of the audit process. It is the company memoranda and local law that governs this.biztreesg wrote:Anyone knew what is the request from auditing ? Any FRS requirement ?
SE - I was being very technical. The preparation of the numbers in the format of a balance sheet and income statement is NOT part of the audit process. It is possible to have an audit without producing financial statements (and that doesn't negate the value of the audit). I'm not sure as to the SG requirements, but during the audit management sign a "management representation letter" that states that they have disclosed all relevant and material information to the auditors. This will be signed regardless of whether or not financial statements are produced.Strong Eagle wrote:I disagree. Directors must sign audited financial statements, stating that there are no material misstatements of fact. I've always had to sign my audited statements.
It is an inherent limitation in the audit process that if management want to "hide" something then it can be very difficult for the auditors to find it - and it is perfectly possible to do so. Think about cash sales. If the guy receives payment in cash and puts it in his pocket with no receipt, there is no reason why the auditors should think that the sales figures are understated (and therefore the co is paying lower tax). There is a great deal of reliance in the audit process on the management representation that they have disclosed everything.JR8 wrote:I'm not an expert in this sphere, but surely it is the auditors who are stating that the directors have not materially misstated the facts rather than vice versa?
Aren't the auditors a higher level and independent authority free of being 'signed off on' (i.e. their whole point in the first place)?
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