i) Preparation of Audit Report
It is the statutory responsibility of the external auditor to make a statement/report arising from his examination of the books of account.
ii) Stating explicitly
• Whether he has received all information and explanation which to the best of his knowledge is necessary for his report.
• Whether the financial statements portray a true and fair view of the company‘s state of affairs.
• Whether he has received adequate return submitted from branches.
• Whether the company has kept proper books of accounts. All the above should be included in the Auditor‘s report.
iii) Call for confirmation
This would be with respect to;
• Whether the company‘s securities cover its bans adequately.
• Whether personal expenses have been charged to profit & loss a/c.
iv) Working papers
The auditor has the duty to prepare working papers and to avoid them to investigators investigating the company affairs.
v) Certification of financial statements
It is the auditor‘s duty to certify the profit and loss account and other financial statements in the company‘s prospectus and also when managing trustees resign.
