Abstract:
The object of an audit is to express an independent opinion on the fairness of the annual
financial statements. Since these statements contain assertions made by management in
discharging their stewardship responsibilities, its is crucial that the auditors are totally
independent from management. They also have to be seen to be independent. The
accountability relationship is a clear tri-party arrangement.
• Shareholder provide funds.
• Management has the mandate to manage these funds.
• Auditors report to the shareholders on the results management have published.
