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What information (and to who) is the auditor required to communicate at the conclusion of an...

What information (and to who) is the auditor required to communicate at the conclusion of an audit?

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Answer #1

An auditor's primary objective is to express an opinion on the true and fair view of the financial statements of the company with reasonable assurance that there are no material misstatements. This opinion is conveyed in the form of an audit report. The audit report contains the auditor's opinion and this this the information that he is required to report.

The members of the company (ie, the shareholders) are the people who appoint the auditor to audit their business. So the auditor has to communicate his opinion to the members. His responsibility lies to the members and not the management. The members appoint an auditor to check tax compliance, compliance to other laws that govern a company, check frauds and exercise more control over the business.

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