Overview:

The auditor is the one that reviews the entity’s financial statements based on the audit engagement. It can be the financial statements auditing, financial statements reviewing, or other assurance services.

Role and responsibility, and right and duty of auditors are generally prescribed in audit standard and specifically, vary based on the law that audit firm and auditee operating in.

The following are the general right and duties of auditors:

Auditors’ Right:

  • Assess to the records, including the right to access to all financial and non-financial information for the auditing period as well as related period—those records including management account, financial reporting, and accounting system. Supporting documents for expenses and revenues might be requested by auditors for their understanding and verification.
  • Access to certain information and explanation from management for certain matters may require and request by the auditor. They should have the right to access these things. For example, during the audit period, auditors review the contract made between the entity and customers. Auditors may ask management to explain the key term in the contracts or obtain certain information in the contracts.
  • Annual General Meeting is the important meeting that occurred once a year, and the auditor should have the right to receive the notification about when will the meeting will happen and the right to attend the meeting.

Auditors’ Duty:

  • Perform an audit in accordance with International Standard on Auditing. The auditor should review and assess whether entity financial statements including balance sheet, income statement, statements of change in equity, statements of cash flow, and noted to financial statements are properly prepared in accordance with accounting standards and framework or not. The result of the examination should clearly state in its report.
  • The auditor should consider releasing the report based on the agreed timeline. However, the auditor should consider whether the agreed timeline could affect the quality of the audit and audit report or not.
  • The auditor should also consider assessing whether the entity’s financial statements have followed all applicable legislation or not. If not, the auditor should follow the guidance from ISA that applicable to this case.
Related article  [Update 2017] Summary of ISA 720: The Auditor's Responsibilities Relating to Other Information

Sinra