Explain The Purpose And Content Of A Statutory Audit Report?


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Ian Marshall answered
A statutory audit report is a checking of accounts, necessary according to the laws and accounting directives that a particular institution is governed by. This can be necessary for a company or a public institution such as a council. Depending on the country and the relevant laws associated, these audits may require slightly different contents but generally it will cover the financial situation and activities of the body in question over a particular period of time (typically a financial year).

Companies may be required to have an auditor present in the hierarchy and usually they would be elected by shareholders and sit alongside the board of directors. Again, this depends on the country where the audit is taking place, and the statutory auditor may have substantially different liability from one state to another. The report is generated to communicate to shareholders, the public (if relevant), employees and creditors, the state the company finds itself, and to update on the progress and investments.

Some moves have been taken, at least in the European Union to consolidate an international standard of auditing practice in order to standardise these reports and guarantee the quality of auditing carried out but at present there are only "best practice" suggestions.

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