Which one of the following is NOT a duty of the auditor?

Correct answer: A. Duty to report to the company's bankers

  • A. Duty to report to the company's bankers
  • B. Duty to report to the members
  • C. Duty to sign the audit report
  • D. Duty to report on any violation of law Get Executive Coaching

Explanation

The auditor’s statutory reporting duties are primarily to the members and may include reporting legal non-compliance, as well as signing the audit report. Reporting directly to the company’s bankers is not a normal duty unless separately required or authorised.

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About Auditing

Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.

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