(a) Section 162 of the Companies Act and related 7th Schedule to the Act deal with the auditor's duties and rights. Required; List four duties of the auditor...

(a) Section 162 of the Companies Act and related 7th Schedule to the Act deal with the auditor's
duties and rights.
Required;
List four duties of the auditor of a limited liability company that can be inferred From
Section 162 and 7th Schedule of the Companies Act.
(b) Differentiate between a continuous audit and an interim audit.

a) Duties of an auditor of a limited liability company that can be inferred from section 162
and 7th schedule of the company's Act
i) To form an opinion as per the whether the financial statement gives a true and fair view
and are presented in accordance to the applicable framework.
ii) To issue a report on whether proper returns have been received from the branches and
subsidiaries not visited during the audit
iii) To issue a report on whether all information and explanation required necessary for the
audit have been obtained
iv) To issue a report on whether the books are in agreement with the accounts
v) To issue a report on whether the accounts do comply with the company's Act

b) Difference between continuous audit and interim audit
- Interim audit is the independent examination of the accounts in between the financial
period by an external audit in order to report on the true and fair view of the interim
financial statement of the reporting entity.
- Continuous audit involves regular examination of the accounts in irregular field visits.
The audit work IS carried out at predetermined intervals usually around three audit visits.

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Kavungya answered the question on May 14, 2019 at 12:14

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