The essential role of an audit

THE powers and duties of an auditor are clearly defined under Section 266 of the Companies Act, 2016. Here, the law states that an auditor has a statutory duty to report to members with regards to the financial statements, company’s accounting and other records related to those financial statements.

The auditor is also required to state in a report whether the financial statements presented give a true and fair view of the affairs of the company. An auditor is required to provide reasons if he or she is not satisfied with any matters related to the financial statements.