You might have a clean audit opinion but material weakness in your internal control function… It’s better to check it out.
The opinion of a company’s auditors that its financial statements are fairly presented in accordance with generally accepted accounting principles.
Internal control is a process put in place by a company’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives.
When an auditor issues a clean opinion on the company’s financial statements, this is a representation to the public that the auditor has followed applicable auditing and associated professional standards to allow the auditor to conclude with reasonable assurance that the financial statements are fairly presented in line with Financial Reporting Standards in all material respects.
However, a clean audit opinion is not a guarantee of error-free financial statements, it is a conclusion by an auditor, using procedures and professional judgment that are reasonable, that the financial statements are Read more
The requirement that a company keep proper books of account is contained in section 282 of the Companies Act 2014.
Section 282 provides that every company shall cause to be kept adequate accounting records, whether in the form of documents or otherwise that –
The Ethical Standard for Auditors, issued by the Irish Auditing & Accounting Supervisory Authority set out the basic principles that must be applied when carrying out an audit.
All audit firms must comply with this standard. The standard also addresses certain circumstances where an auditor may be faced with an issue that challenges their ability to act independently. Where possible, the standard seeks to advise audit firms on circumstances that are prohibited and also circumstances that are only allowed after adequate safeguards have been put in place.
Regularly firms will provide additional services to an audit client (referred to as non-audit services). This can create a number of threats to an auditors independence (self-review, self interest, management, advocacy, familiarity and intimidation threats)
Before the firm accepts to provide a non-audit service to the client, the engagement partner should:
If the auditor determines that Read more